General Stock Ideas

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The recent price action for SGH has been nothing short of a feeding frenzy, a craze, a mania!! As you pointed out, "It's been up strong the last two days on increasing volume". SGH closed at $44.22 Friday and the last bid/ask after hours was $44.80/$45.38. I'm pretty sure that a significant majority of investors haven't even heard of the company, meaning that a lot of new money may be pouring into the stock as it gains more public attention. Nonetheless, the immediate, near-term share price movement is primarily contingent on Thursday's earnings release, the subsequent CC and guidance issued then, and any analysts' upgrades, or downgrades, disseminated in the short term. It might be an excellent candidate for a long-term buy-and-hold. If they keep churning out good results, the only negative I see would be if the overall market takes a nosedive carrying SGH down with it.

I've got a ton of reading I want to do on SGMO today and tomorrow, but before I do that let me say that there are a lot of catalysts that can propel the share price higher. We just don't know when they might occur. Therefore, one has to own the stock before any significant, positive announcements are made. After any announcements, it's usually too late to get in to participate in an upward move. But the big payoff will probably be, you're right, months/years down the road. I may jump out if the stock gets a bump up and then wait for a lower re-entry point. The threat of a major market tumble weighs heavily on my mind.

One question -- doesn't the upfront payment of $150 million from Gilead/Kite count as earnings on this quarter's books?

SGMO is a very early clinical stage biotechnology company and so there is probably little progress that can be shown in clinical trials as they haven't gone beyond Phase1/2 with any of their ZFN products. But there are other potential catalysts that could take the stock higher. They have been granted fast-track status by the FDA for at least three of their drugs.

https://www.sangamo.com/sitemap

https://clinicaltrials.gov/ct2/results?term=sangamo&Search=Search