Nucryst Pharmaceuticals Corp. (NCST)

[PaperProphet]

That FDA approval is interesting. This morning, the stock is up over 100% on that news.

Looking through history, Nucryst put their cream through phase II which ended in September of last year. The results of the study are here...

http://www.nucryst.com/current_releases/pr_9202006.htm

Looking at it, their cream did no better at healing dermatitis than placebo! So what good is it? They developed this cream, put their heads together and determined their best shot was dermatitis for clinical trials and then found it was no better than placebo. However, it was determined to be safe so they get FDA approval, apparently while they try to find out an actual worthwhile use for the cream.

I don't have anything against the company and they seem like good, honest people but they seem to be stuck with a very questionable product.

I'm guessing this >100% one-day gain so far today is largely the result that it's 11:00 am and the entire float has already traded. If it moves up more today, it will probably again be largely to the volume trading. I wouldn't buy the stock at this point.