usually SGEN bounces at some point after an extended down draft. I'm surprised there were no upgrades following the decent data released during ASH. Maybe the brokerages want the stock to first drop to below $24 before announcing an upgrade or initiation of a buy.
If you understand what the data revealed at ASH is saying and if you are fluent in simple arithmetic you can't help but notice that SGEN is being overlooked by the market and it is one of the most compelling investments for the next 1-5 years. Just the phase II front line data for HL is worth a triple+. Think about it, current ABVD treatment produces an impressive 77% complete remission rate with 25%-30% lung toxicity while A+ AVD produces an astounding 96% CR with no lung toxicity. That alone means that between now and the end of the front line phase III (1.5 to 2 years) the market size will quadruple on HD alone. Factor in success in at least half of the additional SGEN trials (the data so far looks way better than that) add in royalties from partnerships (CLDX, Roche, PGNX etc)and 5 years from now given a PE of 20 the share prices is easily north of $400.
Can't stick around for that long?
After approval for front line HL fair value is north of $ 80 per share.
Thake that stick it in the pipe and smoke it Mr. George Farmer!
The stock is one that will rebound nicely and may be slightly effected by the tax selling. The company continues to expand it business and offerings and will be moving to front line therapy in the not to distant future. Do not lose sight of the fact that the company has stayed on course and its platform is now moving into second generation application.
No dilution, sufficent liquid assets, increased visability out of ASH. Getting close to loading up again and never looking back.