pSivida Requires Some Patience
Lately, I have received a few emails questioning pSivida's recent poor stock performance. They are excellent questions and I'll admit that I, too, have been surprised by pSivida's 35 percent dive over the past two months.
It is my estimate that some of this is the result of momentum investors who were hoping to make a quick profit after the company was profiled in the Forbes/Wolfe "Nanosphere" and then subsequently added to the Merrill Lynch Nanotech Index; but are now selling because the stock hasn't gained any traction. (I believe this might also account for a portion of StarPharma's poor performance). As for why the stock hasn't increased in price, I believe that many investors, particularly some of the larger institutional investors in the U.S., are taking a completely rational wait-and-see approach. Specifically, they are waiting for pSivida to demonstrate more definitive results from the Phase II trials of its BrachySil.
If the results are favorable or, alternatively, if the company can publicly disclose the "top 5" global pharmaceutical company it is working with, I believe the stock will rapidly appreciate. The stock's appreciation will be even greater if pSivida can announce that it has either met some important milestones for that "top 5" global pharmaceutical company or if it can enter into new partnerships with some other large drug companies. (Full disclose: I own stock in pSivida).
I intend to hold all of my stock in pSivida for the present time and will accumulate more once I see the company has begun to meet some of the above mentioned milestones.
Jack Uldrich
Related Links:
pSivida: Down Under Company has Big Upside Potential
Starpharma "Nano" star on the rise?
Elan Good News for Nanotech Investors?
It is my estimate that some of this is the result of momentum investors who were hoping to make a quick profit after the company was profiled in the Forbes/Wolfe "Nanosphere" and then subsequently added to the Merrill Lynch Nanotech Index; but are now selling because the stock hasn't gained any traction. (I believe this might also account for a portion of StarPharma's poor performance). As for why the stock hasn't increased in price, I believe that many investors, particularly some of the larger institutional investors in the U.S., are taking a completely rational wait-and-see approach. Specifically, they are waiting for pSivida to demonstrate more definitive results from the Phase II trials of its BrachySil.
If the results are favorable or, alternatively, if the company can publicly disclose the "top 5" global pharmaceutical company it is working with, I believe the stock will rapidly appreciate. The stock's appreciation will be even greater if pSivida can announce that it has either met some important milestones for that "top 5" global pharmaceutical company or if it can enter into new partnerships with some other large drug companies. (Full disclose: I own stock in pSivida).
I intend to hold all of my stock in pSivida for the present time and will accumulate more once I see the company has begun to meet some of the above mentioned milestones.
Jack Uldrich
Related Links:
pSivida: Down Under Company has Big Upside Potential
Starpharma "Nano" star on the rise?
Elan Good News for Nanotech Investors?
posted by Jack at 5:51 AM
