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Justin M. Hall's  Instablog

Justin M. Hall is an entrepreneur, investor and author. Hall serves as owner and founder of HiRx, LLC located in Indianapolis, Indiana. He is the author of "The Option Investors Desk Reference©" (2008). Hall invests in areas of innovative growth, such as (1) late-stage drug, device... More
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  • Spectrum Pharma: Shares Won't Stay Under $5 Much Longer 9 comments
    Nov 9, 2009 01:57 PM | about stocks: SPPI
    Are you paying attention?

    From my biased view, Spectrum Pharmaceuticals (SPPI) will not be trading under $5 too much longer.




    Disclosure: Long SPPI.
    Themes: Are You Paying Attention Stocks: SPPI
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This post has 9 comments:

  •  
    Hi Justin...this is a present for you..

    ash.confex.com/ash/200...

    Bye..
    Nov 09 05:45 PM | Link | Reply
  •  
    ------------- WOW! -------------

    Twenty-one papers / presentations - this rocks!

    Thank you for this, Albatros!
    Nov 09 07:46 PM | Link | Reply
  •  
    Congratz to your ARIA holdings. Unfortunately, I didn't own one.

    I've been hold my SPPI from 4.45, fundamentally this company is very undervalued. I hope it will doing the same as ARIA.

    Keep posting man!
    Nov 09 09:14 PM | Link | Reply
  •  
    Consider the Nov5 calls, to play the Friday Nov 13th earnings announcement. At 15 cents, the stock just has to move 10% from here in 9 trading days.
    Nov 09 10:59 PM | Link | Reply
  •  
    DO NOT CONSIDER THE NOVEMBER $5 CALLS.
    Nov 10 01:09 AM | Link | Reply
  •  
    Out of curiousity, why not the Nov5 calls? They are already double the value this morning?


    On Nov 10 01:09 AM Justin M. Hall wrote:

    > DO NOT CONSIDER THE NOVEMBER $5 CALLS.
    Nov 10 09:56 AM | Link | Reply
  •  
    Regardless of today's move, the bet you suggested almost always fails. While your call was correct and I commend you that kind of speculation is bad practice and will bring on bad habits. Refer to intrinsic value.

    SPPI is a great longer-term play and should be played accordingly.

    Mitigate the risk of time decay by playing the January 2011 or 2012 calls and hedge with near-term puts.
    Nov 10 10:20 AM | Link | Reply
  •  
    Fair enough - for inexperienced investors, speculation is ill-advised. I agree with that.

    However, for experienced investors, a small percentage of their portfolio should be in speculative investments. SPPI is certainly that.

    I also think that near term trading (via call/put options, like the Nov5 calls), with an imminent event (like earnings on Nov 13th), are a reasonable play - especially if the trading is on top of a core investment in SPPI and is also a very small percentage of the investor's overall holdings.

    These calls were 15 cents each. The stock needs to trade over $5.25-ish by next Fri Nov 20th. Very good risk/reward, in my opinion.

    Thanks for sharing your thoughts. Have a good day.

    Disclosure: I am long SPPI.


    On Nov 10 10:20 AM Justin M. Hall wrote:

    > Regardless of today's move, the bet you suggested almost always fails.
    > While your call was correct and I commend you that kind of speculation
    > is bad practice and will bring on bad habits. Refer to intrinsic
    > value.
    >
    > SPPI is a great longer-term play and should be played accordingly.
    >
    >
    > Mitigate the risk of time decay by playing the January 2011 or 2012
    > calls and hedge with near-term puts.
    Nov 10 12:25 PM | Link | Reply
  •  
    Arizona:

    I do not disagree with anything you said. In fact, I believe your call is a good one. It's a play I would have certainly considered under different circumstances.

    I just don't want to receive email if someone loses. As you know, someone always loses. Ex. A few people elected to sell their positions in SPPI for a loss during the recent sell-off, which was led by manipulative liars, who are now gone (funny). Not all were margin calls. The folks who sold did not and could not believe that shares would recover as they did not see or understand the value of Zevalin.

    So, I do like your call. One needs a little know-how in order to play it effectively.

    Justin
    Nov 11 11:55 AM | Link | Reply
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  1. Update: 10.9.09 (46 Comments)
  2. FULL DISCLOSURE STATEMENT (18 Comments)
  3. Spectrum Pharmaceuticals: Undervalued and [now] Oversold (17 Comments)
  4. Spectrum Pharmaceuticals: $50 Million Vote of Confidence or Cause for Concern (15 Comments)
  5. A NECESSARY COMPROMISE (14 Comments)
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