Jason Napodano, CFA
Research analyst, medium-term horizon, biotech, small-cap

Still Betting On DARA Bio

We're still betting on DARA BioSciences, Inc. (DARA). It's been 14 months from our initial recommendation to buy the shares, and we're currently down 37% on the call. So what makes us believe that DARA is a stock not only still worth owning, but worth buying at today's price (note today's price includes a recent 1-for-5 reverse split)? In short, the underlying thesis of our original call, an interesting specialty pharmaceutical model at a very reasonable valuation, still holds. Below we do our best to outline why we are hanging on with DARA.

But First, A Quick Review of the Q4

On February 4, 2014, DARA Bio reported financial results for the fourth quarter and full year ended

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