Let's take a second look at biotech, SPPI: Recall back on June 29-30 volume moved above 5 millions and closed price $7.6 respectively 3 days prior to SPPI July 2nd FDA action date Thursday. Everyone knows, priced dropped two days prior, profit taking, risk mitigation or whatever you call it, if it's not approved. PPS further dropped again as actual news released. So, here we are at it again, price moved above resistance levels with good volume in anticipation for Zevalin getting the nod from the FDA. The question being raised, will this time around be any resemblance that of the last? To answer let's speculate on now vs then question.
1. This time huge action, volume and price over resistance levels 6
days prior to action date vs 4 days last time?
2. This is the second time around with all data are in, second time
the charm, less risky vs the first time?
3. Potential in sales of Zevalin are more established vs last time?
4. SPPI's leading product now has fast track vs no news last time?
5. SPPI enhanced their impressive pipelines and compound by acquired
total rights Renazorb and Renalan
6. Fusilev FDA action date Oct 8th which is 2 months closer now vs then
With more factors are now known vs back then, and as a biotech, SPPI
being a speculative play. The more known, the more the price will
reflect upon it. However, will investors' trading impulses and mm and
hedge fund risky leverages on day trading will fair on SPPI this time
around? Will trading similar to that of the last or this time is
different some new facts are in leading to FDA approval? Will have to
wait and see, now let's go and play.
Friday, August 28, 2009
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Great post on sppi.
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