I've had a lot of trouble writing about this stock. Believe it or not, this humble penny stock used to rock $378.75 (February 18, 2000).
So today, this bad boy exploded for 50% during the day and another 15% in after hours trading and I'm sorry that I couldn't write about this sooner but I just didn't have any major insights like I do with some other stocks like ARNA or GM. So I apologize however I just wanted to share my notes on this bad boy while it's top of mind.
HOW IT GOT HERE:
Back in December (2006) the company's main pharmaceutical pony, Alfimeprase, got steamrolled when it failed a Phase 3 clinical trial of it's performance in acute peripheral arterial occlusion (in English: it fights blood clots and might be effective against stroke) and took an undeserved (okay, maybe deserved) drubbing.
Testing involves, at times, failures. My thoughts on the 80% drop in one day...Wow.
WHY YOU SHOULD BUY (HAVE BOUGHT) IT:
It just received fast track approval for several of their cancer drugs (see website for details). I've read that "usually (and I emphasize usually), bio techs receive final FDA approval when the FDA has already fast tracked their drug." But let's be honest... any drug is fast tracked if there is a disease out there with no treatment or cure. It's fools gold.
It also has a decent pipeline with cash on hand and no debt. It's also worth mentioning that Bayer, the 50 million sponsor for Alfimeprase didn't jump ship.
MY REASONS FOR BUYING IT:
I really didn't have any. I didn't write about this one early on because I didn't feel strongly about it or have any unique insight. I just saw a solid company with with a lot of potential, strong public (CAPs) support, that is trying it cure something that is very close to me. It all came down to a bet on hope.
Notes:
In Portfolio: This one's for hope... I'm in!
Duration: Until it hits $378.75 again! (hmm, we'll see)
Random Thought: Cats are clean, they're covered in spit.
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