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Snowball research notes – price crash series

Why Intrexon Corporation (XON) Shares Crashed 50%?

by | Mar 3, 2019

Intrexon Corporation (XON)

M.Cap: $660 million

The company focuses on programming biological systems to alleviate disease, remediate environmental challenges, and provide sustainable food and industrial chemicals.

Reason for the stock price crash

In the last three trading days, shares of Intrexon declined 50% after filing of the FY 2018 annual report – the company warned (added in the 10-K) its ability to continue as a “going concern.”

Even though financials were released a few days before filing of the annual report, the significant stock price crash is predominantly due to company’s warning (added in the 10-K) about its ability to continue as a “going concern.”

Based on our balance of cash, cash equivalents and short-term investments of $222.5 million as on December 31, 2018, and recurring losses since inception, there is substantial doubt about our ability to continue as a going concern within one year after the date that our financial statements were issued.

10-K

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