Readers Ask: Adventrix, Ariad Pharmaceuticals

Includes: ARIA, SVRA
by: VFC's Stock House

In "Readers Respond" I do my best to answer readers' questions, but keep in mind that these questions are my opinions and personal speculation that I have based on my own research and DD. I don't invent the facts that are based in publicly available information, I just comment on them.

Also, I will try to respond 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.

A comment from Ian regarding Adventrx Pharmaceuticals (ANX):


What do you think of ANX? Do you this FDA approval will be granted next year if they submit their NDA this year for ANX-530?

Please share with us your thoughts.


VFC's Take: I've commented on this stock a couple of times already at the request of readers, the following links will take you to those posts:

Readers Respond: ANX
VFC's ANX Update

I maintain my stance that ANX could be a good speculative play for the short to mid term as the stock should drift higher as the date for the ANX-530 NDA filing approaches. The stock could then drift upwards as the date to the FDA decision approaches. I am not going to take a guess as to whether or not the FDA will approve because the FDA is a fickle bunch, and I have not followed this stock extensively, but I will say that I would sell some of my trading shares on any significant spikes in order to be on 'house money' by the time FDA decision time was imminent.

A recent announcement of financing knocked the stock price down a little bit offering new investors a chance to get in for a little bit cheaper than before. Barring any bad news, this stock should at least surpass its current 52-week high, in my opinion, based purely on speculation.

Something else to take note of, the company is pretty confident in its future because a PR released last month indicates that they are shooting for a listing on the Nasdaq exchange. I would imagine the listing on the Nasdaq would not be an option until post-approval of ANX-530. Adventrx still needs to worry about meeting the listing requirements for the AMEX, but they have been granted an extension to do so.

Disclosure: No position.

A comment from Doran regarding Ariad Pharmaceuticals, Inc.(NASDAQ:ARIA)

thanks for sharing.
can you also let us know your take at ARIA?

VFC's Take: ARIA could be a good mid to long term speculative cancer play, in my opinion, based on the potential of Ridaforolimus, the company's small-molecule inhibitor of the mTOR protein in cancerous tumors that Ariad has partnered with Merck & Co. to march the product towards market.

Ridaforolimus is currently being investigated for the treatment of multiple types of cancer, but the most advanced trial (SUCCEED trial) measures the drug's effectiveness in the treatment of metastatic sarcomas.

I like the fact that Merck & Co. is on board, but that is no guarantee that Ridaforolimus makes it to market; if anything goes south with that product, then a big price cut would be in store for this stock - although the company does have additional products in the pipeline in early stages of development.

If you're in since below a buck, congrats! If you're looking to get in for the future potential of Ridaforolimus based on your DD of the product candidate, I'd say buy a few shares and try to play the dips. If RIdaforolimus makes it to market, especially with Merck in Ariad's corner, I expect big things from the ARIA stock.

Just my opinion, all should do their own DD.

Disclosure: No position.