A few reasons why phase 3 news will move the price up
1)SNTA is oversold.
2)The price has closed the gap so that it goes only two days back.
3)IMO ....momentum players should jump in....pushing the price higher
4)Short sellers may want to make it look like they are in retreat.....take the price higher(as they did on 7/7 to $4.96)....then send the price back down....and the shorts pocket more money
5)I would not be surprised with follow up news at E/R or earlier..
6)SNTA increased R&D 45% from last FYE.Mgmt is on the cusp of announcing more news.
7)As was earlier pointed out,Ganetespib,moved into phase 3 has multiple oncology applications(huge pipeline) and the time for discussing partnerships and revenue sharing would be now
Bottom line-----right now SNTA is oversold although I am surprised at the tepid response of today's action.
I think the reality is said best through Bruce Kovner, and I am very long the stock...and I don't know the exact quote, but it is about being sure you understand risk and being able to explain why a trade did or didn't work. I think one of the key factors which precludes more institutions to perhaps take a position in the stock, is that there is an active CEO search under way. It's difficult to explain, if you are a fund manager, taking a position, in a highly speculative stock (all bio-techs are highly speculative - they rarely have revenue, they burn a lot of cash, and have significant cash requirements), when the Company has clearly communicated they have an Executive Committee running the company, while searching for a CEO, which self-admittedly, can take a while.
Again, I am long the stock and the platform nature of pipeline, but I think that is a massive overhang that provides short-sellers a runway until this key point is cleared up.
I do think, at a $350 M-ish market cap, the potential reward is very interesting, but I think you have to get comfortable and manage expectations if you are long...without a material distribution deal or continued positive results w/ their clinical trails, the stock probably hovers in this $4-type range.