Agree; a combination of short sellers and panic sellers as well as profit taking in the overall market might drive SNTA to below $2 temporarily, but once the news is out about a successful drug trial, the stock will soar.
SNTA is down in sympathy with the market and some lingering worries about the recent CEO appointment. Patient investors will be rewarded. Bruce Kovner, has 37 million shares on the line. He didn't become worth $4.8 billion because he was stupid.
If biotech as a whole corrects, SNTA could test $1.75. Although this is highly speculative, SNTA could be a 5-10 bagger over the next few years. I have 1 percent of my overall portfolio in SNTA because of the highly speculative nature of this stock, however, if the price declines to below $2 on no specific news, I will double up. My current cost basis is $2.37.
The past few days, the stock has been reacting as if that's the case, but I have a hunch that this is an overreaction and it will bounce back to where it was prior to the announcement of her departure.
Whitaker's departure after a brief stint as CEO of SNTA has raised red flags this week. Once the dust settles, SNTA will head back to the 3's in anticipation of positive Phase III results of their flagship drug in the 2nd half of 2015. IMHO
Kovner's 37 million shares in SNTA are worth about $100MM which equates to only about 2% of his net worth. According to Wilkipedia, his net worth is $4.8 billion
SNTA is not an investment; it is a speculative investment in which I am considering putting a very small percentage of my money in. I am able to afford losing everything I put in.