By the way, the company's valuation now is below $300M. So when it raises cash (at least $100M to last 1 more year), that'd be massive dilution.
They do need $ soon. According to 1st quarter data, their cash burn rate WAS about $90M/year, which was exactly what they had, so that should last until 03/2014. But now they've started phase 3, cash burn will only go up, not down, so we should think about 12/2013.
And you don't wait until the last penny to raise $ do you? Generally biotech do it 3-6 months before they're out of gas - that translates to NOW.
I got rid of all my shares around $5 yesterday. There're 2 issues with SNTA:
- They need to raise $ soon
- Below $5, the stock falls in the hands of penny stock traders. Expect wild swings out of no reason. It's so easy to manipulate a stock like this, but it's hard to predict where's the bottom.
Not to mention the whole market is down at this point. SNTA will eventually go up, but that'd be months or years later.
wow this stock is falling fast. I got out at $5 yesterday and still amazed by how much it falls today. I plan to buy back at the bottom (which doesn't look like any time soon). Feel sorry for those who're still holding.
You can find me if you look up who sits on Federal Reserve chair now. Hence my peripheral interest in stock market. But now I do mostly money printing. I just mess with trolls on yahoo message board like others play Angry Bird - it really is too easy when you know your stuff.
"I'm nearly always right - I would have made a fortune in the market if I didn't find this stuff so boring"
ROFL. I remember saying that when I bought my first stock when I was 12 years old. LOL you just lost all credibility right there.
And they need cash soon too. Raising cash in this environment (the whole market is going through correction) is just bad timing.
I was long but got out at $5 today. Gluck for those who stay.
Can someone please explain why INFI ran up to $50 back in April? Funds buying? Cramer?
I've just been watching INFI since May and feel sad to see a stock drops 60% within a month. Why it blew up to $50 is also baffling to me.
I just bought SNTA. I'm at ASCO today and feel good about the data. I have no idea why it's down so much, but good time to buy. Will go to their presentation and post later.
kampaa, you didn't sell too soon. It was perfect timing. I'd suspect the market to drop in June because of expected rising interest rate. Profit taking at this time is the right thing to do.
(I'm not being negative, I'm long VNDA too but locked in profit today.)
6.4% drop is significant, though I wouldn't call it a big sell off because the volume was average. Seems like investors just forgot that SNSS will present at ASCO and there'll be other catalysts coming up? Anyone has other ideas?
I can't imagine it going much lower. Even if GALAXY-1 fails, SNTA still has a rich pipeline: ganetespib in combination with others in several types of cancer, elescomol for ovarian cancer and AML etc. Since early May, the stock has fell 30% - to me it seems that the market already assumes that GALAXY-1 fails and discounts for that.
I'm new to SRPT. While I think it's a great company, I don't understand why it ran up 25% in May. And average target price is only $19 (!) Can someone please explain to me why the run up? Many thanks.
If you look at the volume, today's volume is one fifth of the usual volume. Run up in this climate, when the whole market is down and worried about Japan? Kind of bad timing isn't it? Investors are standing from a distance holding their breath.
I still think SNTA has huge upside potential, it's just we need more volume.
thanks dr.vin, but why should there be a run? Since the abstracts were released last week, investors already had time to ponder upon them and I've seen some stocks adjusted quite nicely. SNTA is the only one still holding it off, which could be either good or bad, that's why the stock has been flat.
The ultimate bottom would be $8 (cash value). INFI seems to be tracing down to cash value, as investors fear that the whole pipeline is worthless because of competition etc. It's sad and irrational, but fear and greed are always the main drivers in this game.