word on the street is Astra Zeneca has a solid oncology pipeline. Pfizer doesn't but also doesn't have the time to to wait for Synta's data to ripen, they need something now. Stifel and BMO downgraded the stock, after and only after the forner CEO departed. In all the notes that I have read, they have made no mention of being concerned on the data, but rather management. That has been their only caution. They can't comment on the data because they know absolutely nothing about it. Meanwhile the billionaire hedge fund that everyone seems to be clinging on to has continued to raise his stake, and the company has raised more capital. Oh and their VP of business development was terminated. You can be a technical trader, long, short, options trader and you can all be right, or wrong. When you evaluate this company based on past, present and future earnings, the human element of their management team and probability to increase shareholder wealth then you're downright dumb to think this company should continue to be publicly traded. All signs indicate that this company will be either taken private or acquired by another private company and it won't be at some outrageous premium. Shareholders will be rewarded, but modestly. I would venture to say 75% of the current range.. Look up Genentech if you need an example.
SNTA valuation at this point in time is not an easy task. Continued positive outcomes with ganetespib in ongoing trials brings up the value of that product. The unknown value of the HDC platform is a key component to the true value of SNTA and these products could eventually make up most of the SNTA drug product pipeline. The science behind the HDC platform is sound and a number of great products will probably evolve from this platform over time. The current stock price does not put a value on the HDC platform drug products which is the hidden value in owning the stock. Over the next couple of years the values will become more apparent and the stock price should climb respectively. Assuming that SNTA only has buyout value is way off. This is a good long term play and the low price has been great for those accumulating shares.
The key to investing in SNTA is .....Keep an eye on the HDC Platform!