The volume was due to the pricing of the secondary offering. The price was $2.50 to those who play the Wall Street rigged crony game and can participate in such deals. But for the retail riff-raff like me, we have to go into the open market to buy our positions (such as at $2.52), which is what I did today. While I don't know what will happen to the sock price tomorrow or next month or next quarter or next year, what I do know is that relative to fellow small pharma peers with clinical candidate assets, this seems to be mispriced in my opinion. That's why I added significantly to my prior very small position today.
But I'm no Wall Street guru, nor do I pretend to be one. Instead, I'm a working grunt who just happens to work for a similar small pharma company with a larger market cap. Was today's buy brilliant, or profoundly stupid? Time will tell. I have patience because I like to pay lower tax rates on gains.
hopefully the cash will help them push their growing pipeline forward. So I would hope to expect some near term news in that regard. It would have been nice if they did the offering when the stock price is higher, - to lower dilution. I guess their mgmt felt they needed to do this now and the benefit outweighed the level of dilution.....time will tell... the stock already took the hit, no purpose in selling now based on this ......
"Was today's buy brilliant, or profoundly stupid? Time will tell." I have a slightly different take on investing in small cap pharma. It will be neither brilliant nor stupid! More like "good luck" or "bad luck"! You do your due diligence and place your "bets" based on the info you can tease out of the data. At the end of the day, no one knows how the drugs/trials will turn out and which ones will take-off and which ones will crash and burn, but with a little bit of scientific understanding of the process, you might be able beat the odds you get in Vegas!
Most honest and straightforwad post I have seen from anyone on the yahoo message boards in quite some time bitesr. I am in the same boat, my purchase could prove to be brilliance or a train wreck, time will only tell! Good Luck!
No flames, I have a decent position that I am adding to. Seems very cheap to me, but it all depends on execution. Could be a very good year for us. Assuming maket half way decent we will be higher in time.