No catalyst for this stock. All the positive news is priced in. PLX is perceived as a one product company in a crowded space (GENZ and Shire). Anti-nerve agent is a late 2011-2012 story and no one can model the potential revenues from this.
The stock will trade between 6.50 and 7.50 for next 6 months.
Insider sales demonstrate BOD lack of confidence otherwise why sell at $7.
Good analysis. Slap us longs who have fallen in love with the stock. I think that the stock has been aggressively shorted and will bounce up like ABIO did today. 2010 will be very nice if you hold, I think. I'm in for the long haul here.
As I stated in my message of March 29, PLX is dead money and at the very least, the company needs to provide clarity on their response letter to FDA manufacturing issues. Without clarity the stock will continue to languish.
Your "dead money" postulate suggests there is a better place to be. While the Street seems to be rotating out of Big Pharm and small biotech towards technology/heavy industry, would you feel more secure there with "the traders" or remaining here as an investor?
Personally, I'm tired of trying to run with the pack as the House keeps changing the road signs. PLX's day is coming, I can wait.
the facts are in favour of your view. You should be aware that a 18% holder- the israeli BIOSEL never sold plx stocks and its CEO and majour shareholder is on PLX board. I assume he would have sold something if he had thought something goes wrong.....I assume it is all as planned but it takes time... Mr Aviezer said in one of his representations that this is a formal technical issue...lets wait...
I moved on to other waters.After coming back and reevaluating PLX i think you might be right.But i will say at no time in its life span has PLX ver been a safer stock to be in.This will be a 20$ stock one day.It just make take a few more years.The went for the smaller orphan niche market for proof of concept but they should have followed with a much bigger mkt dollar product.But heck a 200% return in 2 to 3 years will be pretty hard to duplicate unless you look even further east China is very controversial but of you look at BSPM ,RHGP , BFAR, chme and wait for an enry point you will be very happy.PLX is actually a lot safer though.GLTA
Kevin:I bought PLX at avg of 7.50,but see limited upside for several months. Technically, the stock looks terrrible, testing suppoert at 6.50. I will take a look at the Chinese stocks you mentioned.You gave me 2 home runs last time so I follow your ideas.
What you're describing pervades the entire baby biotech field: profit taking, May go-aways, and a general exhaustion after a long run up is being felt by many even the large pharmaceuticals.
After the long Health Care legislation battle, there is a general uncertainty as to where we go from here. Holding makes sense to me, too.
Technically PLX looks very weak. The stock is exhbiting signs of moving lower in the near term. Lower highs on failed intraday rallies and we are near the lows for past 150 days.
First support 6.50-6.55
If we break 6.50 next support will be 6.25-6.30.
another thing that should be considered is that after FDA approval we have a real business here and the short holders will have to cover...the covering process will raise the stock up dramatically because sales at these levls after FDA approval will be minimal.FDA approval will be a great step because it will also demonstrate that this technology works.You can hardly find companies like that and it will be hard to find them in these prices with approx 130 million cash...( after PFE will finish to pay upon FDA approval). Lastly- when PLX and shire willbe in the market FDA will become harder with GENZ for all their problems...
Don't agree with you, basher bigmilano. Zach's story on Shire and the general volatility of the shortened end-of quarter week has overdone the selling:
I think that PLX is going to double in the next 12 months due to the fda approval and GENZ problems. This is not a crouded market this is 1.2 billion market waiting for reducing price and adding more patients who are not treated due to the price. With PFE up front and good access to the Israeli 1000 patients PLX will show revenues within 6 months. You will also be surprised to hear the news about the agreements concerning the nerve GAZ medicie and its civil applications. with all of this this should be 1 billion stock soon. Remember stocks look at the future and the short term future is bright. The current price is a result of the short sales which in my view are aimed to keep the stock price low for a possible buyout after the FDA approval
Twelve: Your article confirms what I stated. Gausher market is a crowded space. PLX needs a catalyst to get the price up and insider sales dont help.
There is nothing in the pipeline that will cause analysts to increase earnings for next two years.