Spectrum Pharmaceuticals, Inc. Message Board
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SPPI is still cheap, absurdly ?
If the company will sell 160-180 M$ (we can't really believe them right now, so lets pretend) in 2013, considering they can keep this sales rate, Net income could be around 80 M$. A small biotech as spectrum which is profitable should be traded over PE between 20-30, if not 40. If is 20 (conservatively), it should be traded around 16$. There's only the trust problem which is sever. So with trust discount, it should be valued at about 11-14$...
Sentiment: Hold
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Let's run the numbers at $180M/y 2013.
Rev: 180
COGS 40 (It was 15 in Q4, and much of that was the other drugs)
R&D 65
S/G&A 100
That makes for a loss of 25M for the year. Can't really put a P/E on a loss, can you?
Care to try again with actual numbers? -
Insiders and institutions have been selling for some time, shorts were at 55% .I doubt the shorts are done with sppi yet and expect them to slowly sell it down further. The shorts have complete control for the time being and I would be very cautious with this stock.
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According to AF, though not sure if he can be trusted either, during a private conf call this morning with CS, they admitted that they are looking at a loss unless they can reign in expenses. Of course with a shiny new sales force I'm not sure how they will do that. Of course I don;t know who to believe anymore when it comes to this company.
- 1 Reply to james.mcguire
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Don't believe anything AF types, He is a tool of the shorts. When he writes something negative about a company you can be sure the shorts are organizing an attack on that company.
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