Spectrum Pharmaceuticals, Inc.
When you look at the S&P 500’s most shorted stocks, all are cheap yet short investors continue to bet on lower prices. Therefore, I am looking at the most shorted stocks according to Bespoke Investment Group’s monthly list, to determine if any are a “buy.”
Short-Interest vs. Float
Shares Short (4/30)
Shares Short (3/30)
Blyth (NYSE: BTH)
5.32 more »
Spectrum Pharmaceuticals (NASDAQ: SPPI) CEO Rajesh Shrotriya has often said that he would rather have 10 $100 million drugs versus one $1 billion drug. He has not been shy about celebrating Spectrum’s three FDA approved drugs and its pipeline of 10 drugs. Yet somewhere along the road Spectrum took a wrong turn, and the company Santarus (NASDAQ: SNTS) is now the company that Spectrum wanted to become.
Slashing guidance more »
Behavioral finance studies have shown that investors tend to over-react to the most recent events. In other words, they overweight the the importance of recent information.
This means that stock prices may drop below fair value during extended periods of negative news, or rise above fair value during longer-than-normal periods of positive news.
Contextuall.com is built on this idea. We try to identify cases of extremely one-sided media sentiment more »
Spectrum Pharmaceuticals (NASDAQ: SPPI) appears relatively cheap versus its peers with a P/E of slightly under 5 and return metrics (ROA, ROE and ROI) that are almost double that of other players. There may be an opportunity with Spectrum. While low P/E multiples are not a very good comparison metric for small- and mid-cap pharmaceuticals, discounted cash flow is more relevant since the stocks are tied to future more »
On 03/12/13, Spectrum Pharmaceuticals (NASDAQ: SPPI) announced its Q42012 results, and its shares declined 35% to $8, setting a new low for the company.
Spectrum is a biotechnology company with integrated commercial and drug development operations with a focus in hematology and oncology. It markets three oncology drugs: Fusilev, Folotyn, and Zevalin. It has a strong track record of licensing and acquiring differentiated drugs. It also has a more »
A heavily shorted stock does two things: It keeps a stock underperforming for long periods of time, but then it also allows for the potential of incredible gains with just one decent headline. In this article I am looking at three of the most shorted S&P 500 stocks (as of Feb. 28) and determining what could cause the shorts to cover.
#1 Looks Cheap But Has Many Questions Unanswered more »
A heavily shorted stock does two things: It keeps a stock underperforming for long periods of time but then it also allows for the potential of incredible gains with just one decent headline. In this article I am looking at three of the most shorted S&P 500 stocks (as of 2/28/2013) and determining what could cause the shorts to cover.
#1 Looks Cheap But Has Many Questions more »
Yesterday, I published an article titled, “When Being Short Backfires!” So it's only appropriate to look at the other side of the trade. Strangely enough, this comes as one of my favorite companies of the last five years released guidance that simply left me speechless, providing the perfect example of when being long and optimistic backfires!
Staying Long & Optimistic Despite Obvious Problems
It Doesn’t Take Much to Reverse a Long-Term Shorted Stock
Up until last week, Navistar International (NYSE: NAV) traded with a one-year loss of 42%. This is a stock that had seen an incredible downtrend since January 2011, and therefore had created a significant amount of short interest. Because after all, shorts want to invest in a stock that trades lower -- that’s how they make money.
Last week more »
Earnings and earning-related news is the number one catalyst for stock movement. A strong quarter can dictate the direction of a stock for the following three months as can a bad quarter; in the past I have written in detail about such subjects, a domino effect following a strong or bad quarter. In this piece I am looking at three stocks that moved considerably lower after reporting earnings on Thursday more »
Healthcare stocks are always the most volatile in the market, regardless of the market’s overall direction. On Tuesday we saw mass movement in this space from five high-profile stocks. Therefore, I am looking at this movement, determining what it means, and suggesting how to play it.
In an attempt to gauge the health and direction of the economy, I am breaking down each sector, one by one. In this article, I am looking at healthcare, a sector that has underperformed the market but one with components that have significantly outperformed the market.
Healthcare is a unique sector, because it is the only one that is both secular and cyclical. It’s cyclical because it more »
As the year comes to an end, there are a lot of questions surrounding dividends. Some believe taxes on dividends could exceed 40%, or at least double regardless of the outcome from fiscal cliff negotiations. Yet despite these concerns, and the concerns regarding taxes on public companies, there were some companies with major dividend related news announcements on Tuesday. Therefore, let’s take a look at these companies and what more »
A short-seller typically looks for three things in a stock: controversy, excessive valuation or volatility, and other short-sellers. Questcor Pharmaceuticals (NASDAQ: QCOR) is a short-seller’s dream, as it’s driven by one product, has traded with both a massive valuation and excessive volatility, and has 51.10% of its float short as of Oct. 15. But will it remain a short-seller’s dream?
For those of you who have more »
Spectrum Pharmaceuticals (NASDAQ: SPPI) may be looking to repeat a bit of history that I’m sure it wishes to avoid -- between November 2009 and November 2010, the stock traded with a modest loss; if SPPI does not begin to trade with an aggressive uptrend, it could experience the same fate. With earnings on Wednesday, it’s do or die for Spectrum Pharmaceuticals’ short-term trend.
The company will announce earnings more »
On Tuesday October 9 Spectrum Pharmaceuticals’ (NASDAQ: SPPI) CEO Dr. Rajesh “Raj” Shrotriya was presenting at the 11th Annual BIO Investor Forum to provide an overview of the company’s business strategy and commercial and development-stage programs. As an investor in this company, I must admit, that once I saw the press release that Raj would be giving yet another presentation I was trembling, because I knew that the last more »
Over the last four years I have been one of the biggest supporters of Questcor Pharmaceuticals (NASDAQ: QCOR), owning the stock off and on throughout various points in time, and I would have never anticipated its 63% loss during the last two weeks. On September 19 the stock fell 48% after health insurer Aetna (AET) said that it would limit coverage on the company’s drug Acthar. And if that more »
By George S. Mack, The Life Sciences Report
For more interviews with sector experts and analysts, please sign up for our newsletter at www.thelifesciencesreport.com.
I had an opportunity to ask George Zavoico a few questions for The Life Sciences Report. Zavoico is senior biotechnology analyst at the boutique investment bank, MLV & Co. He originally got his career underway as a research scientist and worked in big pharma at more »
The biotechnology industry is fuelling mobility and economic growth and it is expected to show a strong upward momentum in the future. Many investors once considered biotech stocks untouchable, but all that is about to change.
Spectrum Pharmaceuticals (NASDAQ: SPPI) a small, fast growing company which has achieved almost quadruple its revenue is gradually getting its due recognition in the biotechnology industry. The strengths and opportunities outnumber the weaknesses and more »
Spectrum (NASDAQ: SPPI), located in Henderson, Nevada, is a commercial-stage biotechnology company, primarily focusing on oncology and hematology issues. The company is a catalyst in acquiring, developing and commercializing a broad range of diverse clinical and commercial products.
Zevalin, an FDA approved cancer therapy drug, is a key component to its rising strength. The biological drug is for patients in the treatment of Non-Hodgkin's Lymphoma. It was the first more »
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