SHORT SHARES nearly 40M....Are these guys crazy? Once $5.00 holds for a day, or two, POP!!!
Yes, they are crazy. They pushed this stock down way too much and now are paying the price. The market cap of this stock is still very low. Exelixis drug will eventually be approved to treat one or more cancers and likely work in combination with other cancer drugs. That is the newer approach which is to use multiple drugs against many diseases and cancers. Look at Pharmacyclics, Medivation, Alexion, Onyx and Ariad and those stock price histories in the past few years -- all showing the value in developing forward successful drugs.
As to Exelixis, the stock shorters thought they would have several months to buy back the stock and they played on the news of Exelixis issuing more shares to much. Look at Achillion as an example of a biotech that issued new shares and instead the market took that positively. So too now as to Exelixis. Exelixis has sufficient funds now to bring its drug to market on multiple cancers without issuing new shares and so it should be one way from here on the stock price. UP, UP, UP. The FDA news that the FDA has sufficient information came as a surprise to shorters and now the shorters are running to cover and also what is happening is new investors are coming in and old investors are increasing their ownership.
The difference between Exelixis and Pharmacyclics, Medivation, Alexion, Onyx and Ariad, is with Exelixis investors can still get in early and make tons of money by holding long term.
Same is true with Threshold Pharmaceuticals too.
Exelixis with $600M in funds, easily this stock can hit a $1B market value quickly. $8 a share at least is where this is headed.