This is how I see it with the help of a stoc split newsletter that I take. IDPH will announce a stock split in April as they move towards earnings (or a board meeting, I can't remember which). As we approach that date everyone will be piling into IDPH for the pre-slpit run, and on the announcement it will have a huge run, pullback make another run until the stock actually splits.
When the stock splits, many biotechs like HGSI abd CRA just kept on moving higher. And what will be great is that after the split, you will have double the profit because you now have double the shares.
I know, I know. I don't want to hear the bullshit about stock splits don't add value to a stock. But believe me, I play splits a lot. A pre-split run is taking place, don't miss it.
Don't get me wrong - I like a rising stock price as much as anyone. But IDPH's management has consistently made decisions to forego short term, transient gains in stock price to build long term business for the company. They have not been an acquirer of other companies, but have developed their own compounds or made licensing deals in the past. A few companies have been able to grow like gangbusters by skillful acquisition - CSCO is absolutely the most notable example of this - but it takes a much more activist management style than IDPH's executives have exhibited in the past. Folks on this board may care about momentum investors, and I am absolutely happy to have several on board - the more the merrier! But I seriously doubt that IDPH management cares about what the momentum crowd thinks at all. And that's OK too, as long as they continue to make good business decisions, which is what counts most for all of us in the long run. If there is continued rapid improvement in Rituxan earnings and a couple of other hits in the pipeline, the splits will take care of themselves over the next few years.
Many biotechs are rising much faster than IDPH. Their stock prices are currencies that they can use to acquire new companies and new talent. IDPH must do its share to keep pace with them. And a split will provide new momentum and allow IDPH's stock price to increase further.
When IDPH was setting its high around the middle of January, many biotechs (for example, DNA, MEDI, IMNX and the list is long) were 20 to 30% lower than their current prices. If the performance of IDPH relative to other biotechs continues to deteriorate, then we may see some momentum investors bailing out of IDPH causing a further decrease in its stock price. I know momentum investors are a mixed blessing but I would rather have them working for me than against me.
So I hope that management is planning a split for IDPH soon. Contrary viewpoints are welcome.
you are not alone--I sold half of what I had which was only 500 bought at 4.50 for 19.00 and another 300 at 82 but luckily kept the last 200 till now and hope the new 400 splits again. I'd like to think it was skill that got me into IDPH but I'm willing to admit it was a hunch and an appreciation of what they were attempting. My broker sold out most of his clients at around 35--hee hee hee!