CANNOT FIND A BETTER PRICE FOR A LOW ENTRY POINT...........
With shares of Rockwell Medical (RMTI) down 50% YTD, and with short interest down to 8% of float, I believe that the short thesis has finally lost its footing. Rockwell has bounced somewhat from its low of $3.16 on March 20th, but is well off the 52-week high of $10.70 in June of 2012. This discounted price offers investors a low entry point going into the release of Phase III data expected next month.
Rockwell is a biopharmaceutical company focusing on products for patients on dialysis, especially those patients with end-stage renal disease (ESRD), chronic kidney disease, and iron deficiency anemia. The company already has a $50 million per year business selling dialysis products, and currently has an iron delivery candidate in Phase III trials that could compete well in the $600 million intravenous iron therapy market in ESRD patients
Only question is whether or not SFP will be successful. If it is, the stock will go up significantly. If not, the stock will get crushed. Its a gamble either way. I'm buying puts as protection in case results are inconclusive or not favorable. I believe the company already knows what the results are as they have had time to crunch enough numbers by now.
Another issue right now is the market is so negative that Rockwell is being hit hard and the market does not look to recover anytime soon.
Plus mgmt recently awarded themselves more stock......100,000 to CEO and 75,000 to CFO. Based on stock performance they should have donated shares back. Leaves a bad taste in LT Investor's mouths. No problem with Gupta and Pratt getting shares. IMO
The SFP science looks solid, Vit. D, and new contracts are positives.