VFC's Stock House: Notes From The Healthcare Sector, SPPI's Drop, AMRN Earnings
(EMAILWIRE.COM, August 10, 2012 ) New York, NY -- Shares of Spectrum Pharmaceuticals dropped by fifteen percent at one point on Wednesday before the closing the day nearly two bucks to the downside after the company reported another round of record earnings numbers. Total revenue for the latest quarter approached seventy million dollars while FUSILEV revenue - keeping well in line with recent growth trends - nearly doubled over the same quarter from the previous year.
To top all that good noise off, the company now has nearly $280 million on the books.
VFC's Stock House examines why after reporting such impressive earnings, that shares of SPPI would drop so significantly.
So why would a company reporting another round of record earnings drop by fifteen percent? As the headlines question the cause and others debate how such a move is possible, the answer is actually quite easy. It's the short interest.
For months we've speculated how the growing short interest of the Spectrum stock would play out on the open market, regardless of how promising returns on revenue were becoming. The "squeeze" that was becoming apparent as revenues grew manufactured a high of well over seventeen dollars as new shorts continued to jump on board. It's easy to get roped into the theory that shares of a feel-good story are going to keep rising as long as the story stays good, but it's also important to take note of the power of the big boys - sometimes the shorts win.
Sunshine Heart (SSH): It has been a solid couple of months for Sunshine Heart. The company last week received FDA approval to utilize its "next-generation" C-Pulse device in patients undergoing treatment as a part of the North American feasibility trial and also for future patients in a pivotal trial geared towards FDA approval expected to start later this year.
TrovaGene Inc (TROV): TrovaGene is another company whose shares have slipped recently, but should be watched as the company may be developing breakthrough diagnostics tests that could identify cancer and other diseased through urine, the most non-intrusive means to date to detect such ailments. TROV's technology identifies in a urine specimen specific transrenal DNA and RNA originating from normal and diseased cell death to achieve its goals.
Amarin Corporation (AMRN): Amarin's second quarter numbers and comments are on the street, and while no surprises were evident, investors will continue to key in on a few words that may hint at an anticipated buyout or large partnership. The commercialization update provided for Vascepa will include, according to company comments:
An acquisition of Amarin, a strategic collaboration, or self-commercialization, the latter of which could include third-party support.
VFC's Stock House is an information and research outlet that brings new ideas to the table and opens discussions for a broad spectrum of investors, with a strong focus on - but not limited to - biotech stocks, biopharma stocks, and pharmaceutical and healthcare stocks. VFC's Stock House provides individual company profiles, write-ups and reports as well as giving general insights into broader-market news through various 'Stock Watch' lists. At the conclusion of most weeks, VFC's Stock House issues a "Weekly Stock Watch" that examines news items, stocks and stories that made headlines during the previous trading week, but may also make headlines or influence trends during the upcoming week as well. The information contained within the pages of VFCs Stock House are not intended to be taken as advice, but as a starting point where investors can follow up with their own DD and devise their own entry and exit strategies.