XOMA Corporation (XOMA)

[offshore48]

Deep and Robust Pipeline, aggressive action by Xoma to rebuild and laser focus on their best candidates, deal with a major player (Norvatis) in the space of which the importance is not even close to being understood, credit line extended to make sure pipeline is developed and potential for skin in the game, etc. Prior to the Eyeguard B results, who had any idea that the pps would drop to the levels we saw? No one, why? Many reasons obviously, but the key take away is that now no one really can imagine any price target out of the 2.00 range. Again, most have no idea and will be left behind wondering how they missed it this time as well. There is no surer sign that a stock will make a very nice move, then when it acts like it can't. Notice how the stock trades in very tight ranges for extended periods during the day whether the price eventually closes up or down. It's telling a story, a very compelling one from where I sit. No one can ever know the timing on price moves, but what the fundamentals are saying, along with what the chart is saying, is classic textbook stuff. We still are in a trading phase, but the volatility is starting to moderate, the indicators are in pre-launch mode, and the next intermediate term will be setting things up nicely for 2016 and beyond. Of course the trials need to meet with success as with any Biotech, but the addition of Norvatis was the game changer. Think of in terms of a Prodigy and his or her Mentor. Right or wrong, this is how I see it. As 2016 unfolds, I anticipate positive outcomes for Xoma by virtue of how the landscape has changed, and assets now in place.