Allos Therapeutics Inc. (ALTH)

[coinstarz]

Reasons to invest ALTH stock

Positives:

1. Low float, low outstanding shares, high percentage of insider holdings, high percentage of institution holdings.

The current O/S is 55.03 M. Insiders hold 42% of O/S. Inst hold 31% of O/S. WARBURG PINCUS PRIVATE EQUITY VIII L P is a major insider that holds 41% of O/S. That means an investment fund control the company and the board. That is a good thing for its shareholders.

2. Clean balance sheet. Debt free. $53M cash in hand. $3M liability.

3. Virtually no short interests; no convertible debt; no warrants.

4. Efaproxyn Phase III trial is to be completed in 2006. FDA filing 6-months after.

5. Orphan drug status granted by FDA.

6. No competitor in sight.

7. Former Tercica CFO Tim Lynch joined the company in Nov 2005.

Negatives:

1. Former CEO is to resign. WARBURG PINCUS is finding a replacement to boost the stock It’s a good thing for shareholders.

2. Daily trading volume is too low. It’s hard to get a small block filled without lifting up pps.

3. Waiting interim review of trial data (uncertainty)