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  • XOMA: Could their shares ever reach $472.50 again? 9 comments
    Dec 30, 2010 4:49 AM | about stocks: XOMA
    After an interesting day for XOMA, shares closed at $5.10 (+7.37%).  Investors are probably wondering what will happen next?

    If good results come out for the next phase of testing, it's going to be a great beginning for 2011 XOMA investors.  Who knows, could it reach $10? $50? $100?  Is there any chance of it ever making it back up to its all time high of $472.50?  Let's entertain that idea for a moment shall we?  If you had 20 shares at the current $5.10, it would be worth about $102 without the cost of commission.  Goes up to $10 a share, you just doubled your investment.  Goes up to $100 a share, you are now worth $2000.  Let's not stop there; if it ever had the chance to go back up to $472.50 a share, that would be $9450.  All you invested was a $102.  Are you willing to take that risk if there is even a minute chance of the shares going up that high?

    Currently, over 23.6 million people in the United States (7.8% of the population) have diabetes.  XOMA 052 could help the lives of all these people. Providing once per month doses.  Only good news is expected from XOMA 052’s clinical trials.  XOMA 052 is also in trials for Rheumatoid Arthritis, Cardiovascular Disease, Behcet’s Uveitis, and Systemic Juvenile Idiopathic Arthritis.

    This is the moment we have been waiting for.  Do you want to look back and know that you could of been a part of it, but wasn't?  XOMA 052 is a drug that will help the lives of millions.  This is history in the making.

    If you haven't had the chance to check out the results for XOMA 052, here's a link.

    www.xoma.com/media/files/TriSoc2009Bhask...



     



    Disclosure: I am long XOMA.
    Stocks: XOMA
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Comments (9)
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  • Michael Bryant
    , contributor
    Comments (6910) | Send Message
     
    I say $472 is a little high. It has to get FDA approval to get that high, and that is years away. But I do expect it to go up to at least $10 by early next year on the positive drug news.

     

    Thanks for the link.
    30 Dec 2010, 10:29 AM Reply Like
  • J.P. Zaragoza
    , contributor
    Comments (189) | Send Message
     
    there used to be a freak around here called nasdaqczar that wrote without dots or commas and predicted that Xoma would get to $100-150 a share. Taking into account Xoma's past performance, poor management and XO-052's stage of development, I doubt it. However, I think its antibody is worth a bet and loaded more shares the last days.

     

    As Michael says, $10 sounds reasonable upon good results release, but $472 is plain unrealistic. On what grounds do you base your valuation?

     

    btw, I´d watch out for dilutions and a potential sell-off when phase IIa results are released next weeks.
    30 Dec 2010, 01:52 PM Reply Like
  • Andolini
    , contributor
    Comments (4) | Send Message
     
    Author’s reply » A freak? Are you trying to compare me to nasdaqczar?

     

    Just noting the possibilities of the XOMA. No one really knows whats going to happen with it. The grounds of my valuation...it was there before ..why can't it happen again? Just an idea. Doesn't mean it will or won't.
    1 Jan 2011, 10:31 PM Reply Like
  • Michael Bryant
    , contributor
    Comments (6910) | Send Message
     
    "Wedbush retains their Outperform rating on the stock and has a price target of $12. The Frim sees cash and cash equivalents of $36 – 38 million to end the year."

     

    collegestock.com/blog/.../
    30 Dec 2010, 03:15 PM Reply Like
  • J.P. Zaragoza
    , contributor
    Comments (189) | Send Message
     
    thanks for the link, Michael. However, according to Yahoo finance, cash and cash equivalents as of 3Q2010 amounted to $16MM.
    31 Dec 2010, 08:44 AM Reply Like
  • J.P. Zaragoza
    , contributor
    Comments (189) | Send Message
     
    I must correct myself. According to the 8-K filing on Dec 29th, where they explain a not very publicited sale of shares, "Including these sales, as of December 28, 2010, there were 28,489,121 common shares outstanding. The Company estimates that its cash and cash equivalents as of December 31, 2010 will be in the range of $36 to 38 million"
    3 Jan 2011, 04:27 AM Reply Like
  • Michael Bryant
    , contributor
    Comments (6910) | Send Message
     
    The quote said "to end the year." That means this is a forward view. $16MM is the past. That means that the analyst sees XOMA having accumulated about $20MM more cash. Well, the stock jumped over 100% from 3Q2010 to now, so that may be how they got the extra cash. Or they could have gotten it by other means. Anyway, the important thing is that cash is seen at about 1/4 market cap. That seems a lot of cash to me.
    3 Jan 2011, 11:21 AM Reply Like
  • Michael Bryant
    , contributor
    Comments (6910) | Send Message
     
    That explains it. Thanks.
    3 Jan 2011, 11:22 AM Reply Like
  • laser151
    , contributor
    Comment (1) | Send Message
     
    how does total outstanding shares of @ 28 mil trade @ 50 mill in a day? Did xoma sell into this create more shares and kill a blockbuster deal for investors and bail out shorts?
    4 Jan 2011, 11:47 PM Reply Like
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