Buy This Cancer Stock Today (PPHM)
Michael J. Zerinskas
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Posted on 06/24/10 at 2:28pm by Michael J. Zerinskas Peregrine Pharmaceuticals, Inc. (NASDAQ: PPHM) is a clinical-stage biopharmaceutical company that manufactures and develops monoclonal antibodies for the treatment of cancer and viral infections. It currently has one cancer agent that is in Phase II trials for use in breast cancer and other tumor treatment and are also testing the same compound, currently in Phase I trials, for use combating Hepatitis C and HIV.
Though production and marketing is clearly far, far out on the horizon, the stock is nominally cheap, currently trading at $2.67.
In regards to current trials, the company recently reported positive news at ASCO on their current Phase II trials. The stock jumped over 30% on that news. Shares have since sold off as they encountered resistance and are now trading near a nine-month low.
So, why buy this stock today?
PPHM is scheduled to be added to the Russell 3000 tomorrow. This means that managers who index to the Russell 3000 will have to purchase shares after the bell today. If that wasn’t enough motivation to add this lotto stock to your portfolio, it is trading almost 7% lower today as the market sheds risky assets.
So—cheap stock, upside potential, forced buyers, and a current discount; that seems like a winner.
Oh, and options trading today suggests that the recent slide is over, as over 7,000 of the July $2.50 puts were sold, on the bid, a short while ago, closing out a long put position on the name.
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