You better use your mind before throwing any BS.
First, I do not think anyone here holds more shares of SPPI than me. I have 140k so far and if it goes lower then I will add more to average down. I did the same for AVNR, SCMP, DEPO, HZNP...
I held them from a single digit price to close to $18s except AVNR that I exited at $12.
SPPI is the only one that displays a weak confused management. SCMP was in the same shape last year with his Japense CEO who held majority of shares but when he was replaced the stock went form mid $5 to over $18.
DEPO and HZNP almost have no drug development. But they have shown very strong growth by small acquisitions and smart financing.
Raj and his team should stop hiring incompetent friebpnds. They should stop micromanaging the company and put their efforts in deals, cost reductions, better legal team that bring value to shareholders.
Sentiment: Strong Buy
Yes, SPPI needs to show some income and it can do it easily by lowering R&D and other expense. It can farm out some of its developments.
Sentiment: Strong Buy
Raj is a good scientist but a weak financer.
No need to chase 4 drugs at the same time but two is enough.
More concentration on sale and revenue.
More concentration on PPS and dealing with shorts and manipulators. Why did not SPPI raise the earnings estimates a week before Q4 earnings that SPPI beat by large margin. That could push PPS by 10% and burn some shorts. Why did SPPI put that much efforts on drugs during Q4 earnings and ignore the income. It was really boring to put those extensive reports during the earnings. The result was that the price went down after the earnings. The drug details could be on a separate CC but not during income report.
Of course, as SPPI makes more rev and income from this drug then Legend gets more royalty.
Sentiment: Strong Buy
Thanks Joe, other posts left out the main phrase
"It has the potential to be a nice runner-up"
Sentiment: Strong Buy
One thing that I am 100% sure is SPPI will not stay at low $6. It will outperform the market significantly in next 12 months. Talking about the market and large caps, they mostly will have negative growth because of high dollar price based on most analysts.
SPPI has a lot of aces.
1- SPPI is generating enough revenue to become positive income if it decided to dial down its expenses.
2- SPPI has a strong pipeline with many promising drugs that can push its price up significantly.
3- SPPI can be a target of acquisition since most biotech companies are desperate for growth.
Choice one is the minimum that SPPI can do to double its price.
Other choices obviously can push SPPI price multiple folds.
The time frame is 12 months and SPPI price will be above $10 by the end of this year if not much higher. That is over 60% appreciation. Show me any other stock or investment that can give you that much profit?
Sentiment: Strong Buy
I know you are a Dinosaur of SPPI shorts and I don't know why are you insist to stay on your old mentality. There is a bottom to everything and that is happening to SPPI. As a matter of fact, it is overdone and SPPI must be at much higher prices compare to peers.
Well, I added 20K at low of $6 ($6.02 to $6.06) again this morning. No bad and thanks for low share prices.
Do you know that some manipulators recycle their shares by selling from one account and buying by another account to depress and bring down the price when volume is low and investors are hesitant to buy. It is illegal in USA but some account holders in other countries, especially Europe, may do it. They do it early morning when volume is light and investors are waiting for market direction.
Next time you see it, jump on the shares and make them to pay for their illegal action and laugh to bank..
Sentiment: Strong Buy
"You need to learn a bit more about Spectrum before you start giving your opinions"
Oh, one has to be out of his mind to lean anything from your boxed thought.
After all, you can't just bury your head in the sand for ever.
SPECTRUM is not only about one tiny trail that may differ in time.
Wait a minute, the market has not given SPPI any credit for its strong pipeline yet and you are dragging one tinny subject in SPPI pipeline and you think the sky will fall on SPPI. Get a life.
Even though I don't like answer your useless arguments but just want to remind you this
Don't lose sight of the forest for the trees.
SPPI is not one trick pony for you to emphasize on one small subject. Fortunately, SPPI has put its hand on so many different directions that becomes flexible enough to choose and continue to progress.
"Don't forget that there is a whole forest behind this big tree
According to the old adage, one should not lose sight of the forest for the trees. A forest is full of beautiful trees for the beholding, but when one becomes so engrossed in looking at the individual trees, they may forget that each tree is merely one of thousands in the forest and thus lose sight of the big picture."
I think SPPI board and management have power to push the price over $30 in a matter of few months. All they need to do is to dial down the expenses and trim the R&D for a few quarters and let the income becomes positive. Some pharmas in SPPI shoes have done it. DEPO was in same situation in mid 2013 with $5 price and negative income until the company stopped all of its R&D and sold out one of its drug. It is over $24 now. It also borrowed some money for its recent acquisition. HZNP is another one witch was in $3 range, no R&D and just marketing. With 2 small drugs but acquired 2 new ones from the borrowed money and went positive income. It is $23 stock now. It doubled and tripled its price in only one year.
Raj hinted that SPPI can slow down R&D to lower the expenses. On the other hand, it can push income positive at any quarter.
However, SPPI sees a bigger picture and wants to be a multi billion dollar company like SLXP.
DEPO and HZNP did not have any R&D and so no R&D expenses. They depended on acquisitions with borrowed money. They probably got lucky and that may happen once in a while with some drugs. I think they are at their peak now.
How about IRWD with only one drug, almost same rev as SPPI, negative income so far but putting money in R&D. Oh, the market cap is $2.4B or 6 times SPPI.
How about SGYP that has put all its energy in one drug in phase III. Unfortunately, similar or better drugs as SGYP have been developed by other companies and they are in the market now. The point is that SGYP has the same market cap as SPPI.
How about GERN with no approved drug and only one drug in R&D. Well, GERN market cap is 1.5 times SPPI. I can go on and on to prove that SPPI situation is abnormal and temporary by design, bad luck, both or whatever reasons. This situation won't last for ever and people who believe in the company and have patience will rip huge profit eventually.
I think, they will be raised again next week witch is the end of Q1 quarter if there is no word from appeal court yet.
However, if appeal court somehow sides with SPPI then the price will shoot over $8.
It won't affect SPPI price if the decision goes in favor of Sandoz again since the bad news was already priced in when the price dropped from high $7 to low $6.
Basically, time is in favor of SPPI. If we do not hear anything in next few months then analysts will be forced to raise Q2 estimates too.
I see a win win situation for longs and a huge risk for shorts. A friendly advise for retail shorts is do not keep any short position overnight since you may get burned at any day.
The main reason bondholders bought SPIF bonds is to make money. However, like any other investment, bondholders needed to reduce their risk so they hedged part of their shares (basic risk management). They are collecting interest/dividend which cannot compensate for their losses so far. Some of them plus other groups or individuals have taken advantage of this situation to ride the wave on back of the shareholders. Meanwhile, most bondholders are watching the company and they are taking some actions based on SPPI direction. They probably increased their hedge after recent court news. However, as soon as an encouraging piece of news about SPPI is out then the same bondholders will take action to reduce their hedging. So, this is like rocket fuel sitting on the side to be on fire at any time to send SPPI to moon. The bondholders will do it to reduce their hedging expenses wile benefit from higher SPPI prices.
Looking at this scenario, retail investors have no business shorting a stock like SPPI. It is crazy and simply it is financial suicide.
After all, patient retails will be awarded eventually. All the signs are there for SPPI shares to double and triple in future. It may happen next day or next week or a year or two but it will happen for sure since history of many other companies similar or less promising stock has shown us this reality.
Look at AVNR, DEPO, HZNP, IRWD, SLXP and many other stocks that were single digit price but pushed up when clouds went away.
How about your description?
Max Pain is a price that most options expire worthless.
In SPPI case, shorts who have been in control of the stock, sold calls and bought puts. They wanted the calls to be worthless and puts in money. To achieve that, the lowest price of the day gave them maximum profit.
That is why we are at this price. Remember that they bought over a million shares before the close, either short covering or going long or other reasons, one or two of them probably see it as an opportunity to make many as long.
If SPPI acted strangely before close, don't blame retails since the whole market and most stocks were in the same boat because of option players. For example, AAPL was in green the whole day until the last minute that dipped in red by $1.60.
I think, recovery will start on Monday.
Let them talk to each other.
I am sick of these negative posters who start a conversation, especially about some drugs Andd clinical trails to spin a negative results by putting half true statements. Smart investors should read between the lines.
I am not done and I will add more in coming days.
At one point, in afternoon (before lunch in California) I bought 5k at ask at $6.33 and a minute later the price was $6.39. I think some investors are becoming nervous, especially some retails with short position.
I am afraid, you are right after looking at SPPI 5 days chart. Most volume is at the last hour of trading day with green column displaying astrong buying trend.
However, how long will this continue? Logically, after 5% or of shares are accumulated or covered before the price is forced to go to next higher level. The next range probably is $6.35 to $6.50 for a few days or weeks.
I am going to add more shares at this point.
So you do not have anything in your life but time to post BS here to biol some real investors blood? Why don't you find another hobby. How about collecting trashes from the street where your house is located.