January was a volatile month for AtheroGenics (AGIX), as the small emerging pharmaceutical company's stock price moved within a $4 range from a low of $9.25 to a high of $13.25. Investors are waiting for the upcoming trial data on its heart drug. The Phase 3 trial of 6,000 patients is expected to show a reduction in the risk of cardiac events, including death, heart attacks,stroke, bypass surgery, angioplasty or hospitalization.
AGI-1067, an anti-inflammatory drug for reducing atherosclerosis, or the build up of plaque inside arteries is a high risk project with the possibility of failure. However, if approved it has the potential of reaching $5 billion per year in sales. Data is expected to be release on the study in late March at the American College of Cardiology Scientific Sessions in New Orleans.
Technicals: Support at $10 on weekly chart. Shares Outstanding:39.45M Float:38.23M Shares Short: 18.67M Short % of Float :49.00% Total Debt: $286.00M 2006E Earnings: -$1.85 2007E Earnings: -$0.45 2008E Earnings: $0.81
If approved this stock will skyrocket as shorts cover. But if it isn't...it's a dud!
No guts no glory.
Disclosure: Author is long AGIX.