Anyone got a thoughts as to why SGEN's PPS has jumped these last two days, along with heavy volume? I'm not aware of any public information that would cause this movement at this time.
Some possilbe options could be, and I'm not suggesting that they necessarily make sense, are:
1. Speculative buying going into a three day M&A weekend. I don't happen to think that SGEN will be bought out in the near future even though I know that there has been much comment within the industry as to their attractiveness as a target. Perhaps others aren't so certain.
2. Shorts covering. Doesn't make sense to me as there shorting investment thesis seems to be strongly based on the belief that the revenue will not be there in sufficient amounts to support current PPS levels. As there is nothing at this point to suggest the opposite, why cover?
3. Baker Bros. continued insider accumulation. I would guess that this would be a blackout period for them and that they couldn't purchase additional stock at this time.
4. Retail sales. Hard to believe that that many relatively small investors would jump on the band wagon all together in large numbers when there doesn't seem to be any significant news on the street.
5. Fund accumlation on a buy and hold (relatively) basis with the expectation of significant Adcetris revenue. Perhaps. Maybe there was some rebalancing at the end of the last quarter resulting in newly accumulated cash looking for a relatively reasonable opportunity. Don't know.
SGEN appears to be building into a technical pattern to accumulate. Any TA guys out there, please feel free to correct me if I'm wrong.
I purchased a small but substantial chuck of SGEN around the middle of August at 14'ish with money I had made from trading FAZ and FAS. (Triple short/long financials). I happy coincidence brought me to SGEN. I see no reason to leave. I was really looking back into OXGN...Oh, the pain I suffer with this one. Stay away from OXGN unless you are very lucky, or just want to watch your money linger in hopes or a partnership/buyout. OXGN has little life left in her.