I'm trying to be realistic here. I have Supergen in as many as five different accounts. Most of them are IRA's and I have a long term view toward those shares. But there are some shares that I am considering selling so that I can better allocate the funds.
So, why would I sell? That's what this post is about. What are the plusses and minusses of owning this company?
With a short term perspective, what events would make you want to sell, and what events would convince you to take a longer term pproach?
The comments are appreciated, and since I started this thread for others as much as for myself, I wouldn't discount any comments.
However, in my case, I still have plenty of carryforward losses from the dot bomb era. So tax loss selling is not an issue. Also, if the dot bomb carryforward weren't enough, I have another unknown amount from a 100K investment that is in bankruptcy court right now (blame the credit crunch). I expect 50K of losses from that although if I am lucky it will only be 25K.
I agree that SUPG is still a good long term investemnet. That's why I am holding all of the stock that is in the IRA accounts.
Given my accumulated losses, I hate to take another loss which makes me want to hold these short term shares until they at least break even, But if I could come up with a good reason for selling, I can use that money on other short term trades.
As far as the items you posted, those are the obvious ones. But in my opinion, as much as you want to see a management change, I don't see that event having any effect on the share price.
I asked what you would do. More importantly, I wanted to know WHY?
I C. Hold my shares. Why, well the stock is at the 52 week low, lowest amount of shares held as being short, we finally got the bad news and the price should reflect this pestimistic situation supg in. There entering a difficult but promising stage if management can get there act together.
If you need the tax loss (especially if some of your shares have short term loss treatment) I would sell some. to shelter other ordinary income. SUPG may still come thru if: 1. Some partnership action.
2. Change in Management (My fervent hope).
3. MP470 continues to show strong clinical results.
The 80-90M we still have in cash is a good cushion even if Dacogen royalties head south as I predict. It will buy us some time.
<<I just responding to the posted message that asked what should one do.>>
Rory, honestly I didn't ask what I should do. I asked what you would do. More importantly, I wanted to know WHY?
As I said, I have many shares in IRA accounts, and those shares are taking a long term horizon. They are not for sale.
The shares in my trading account might be for sale, depending on what happens in the not too distant future. So the real question is, "What do people think are the potential near term catalysts?"
What are the plusses and minusses of owning this company?
Losses and more losses. If you have gains in your others stock holdings then I would sell to cover the gains for tax reasons.
If your supg holding are less than 10,000 shares and your average cost was above $4 to $5 then I would consider selling cutting my lost to half and move on.
If your willing to hold for another 2 years I maybe enticed to wait it out to see how some of there new drugs pans out but set a limit sell at $1.
Or just let it play out and hope it doesn't have ot revese split or have another bomb waiting in management playbook.