Anadys: Better Speculative Plays Out There

Includes: ANDS, EPCT
by: VFC's Stock House

In response to a number of requests that I've received via email or comments asking for 'VFC's Take' on numerous stocks that readers have found, I'll do my best to address as many as I can, as long as everyone takes a few things into account while reading:

- I have not thoroughly researched all of the stocks that I'm about to comment on. I've done the initial DD but my opinions are mostly based on my first impressions of the stock. I'm merely providing VFC's Take, as requested. Use that as a starting point to do your own DD.

- Don't get testy if I don't like your stock. Remember, this is just my initial impression and I take into consideration some variables that other people don't, that's why VFC's Take is not always the mainstream impression.

- I appreciate all the recent feedback, and keep the stock tips coming; this is a great forum for all investors of all levels to share tips and insights. There's a whole lot of stocks out there, but there's only a few gems. Let's keep trying to find those gems.

ANDS: A comment from an anonymous poster regarding Anadys Pharmaceuticals (NASDAQ:ANDS):

What is your opinion on ANDS? Does it pass your "smell-test"?

VFC's Take: ANDS is a fair enough speculative play, although it's drug candidates are in early stages of development. While lead drug candidate ANA598 was given the green light for a Phase II trial, some side effect concerns from the Phase I linger and I'd be a little bit hesitant to buy into this one at near the three dollar level.

Additionally, since the pipeline drugs are so early on in development, financing becomes an issue - which could mean dilution - and any questions regarding any of the pipeline candidates could cut the stock price in half overnight. By comparison, EpiCept (OTC:EPCT) has a comparable market cap, trades for much less and has both Ceplene and Azixa news pending.

I'm not necessarily recommending EPCT over ANDS, I'm just making the point that there are other speculative plays out there that trade for similar levels (in terms of market cap) and hold more immediate potential for returns.

ANDS looks to be a decent long term speculative play, but I'd be surprised if it held up this trading level for too much longer. Somewhere along the line a dip is likely to occur that would make it a much more attractive buy, in my opinion, than it is right now.

Disclosure: No position.

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