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Peregrine Pharmaceuticals Preferreds: Yea Or Nay: Update

Norman Roberts profile picture
Norman Roberts


  • It's official PPHM has reverse split 7 to 1.
  • How does this preferred investor now view its commons as a worthy investment?
  • Not favorably, at least not at present.

Although Peregrine Pharmaceuticals (PPHM) had the authority to do a reverse split of up to 7 to 1, Frankly, I was surprised by it. I had expected a 3 to 1 split, which would have kept them comfortably in compliance. I guess the board of directors felt otherwise and opted for the added safety of the greater reverse split, which brought the price of PPHM up to $4.34/share, which made the possibility of its delisting a remote possibility.

As many of my followers know, uncharacteristically, I held both Peregrine's preferred and common shares. Because prices of its commons were sub-forty cents at the time I recommended their purchase, I bought 6,000 myself and was happy I did. As most well know, I have little fear of this company going bankrupt, specifically because of Avid Bioservices, its rapidly expanding and profitable arm of the business that functions as primarily a biomanufacturer of monoclonal antibodies. This link is to the recent article I am updating, which also contains links to my other articles concerning this company and why I believe a preferred investment in it is a worthy investment.

However, this article primarily concerns PPHM, its common shares. Are they a worth investment presently? My answer is a big fat NO!

The moment I learned that the split would be 7 to 1 was the moment I headed for the closest exit and sold my 6000 shares for a tidy profit. Admittedly, I expected a dramatic fall of its price at today's open, which thus far has not happened. One of the many reasons I am not a day trader or a regular investor in common stocks. Honestly, I have a history of buying high and selling low, not a great resumé for a stock trader worthy of being followed.

However, I still

This article was written by

Norman Roberts profile picture
I suspect that most preferred income investors are conservative by nature. I am. I don't believe I have any special talent or gift for trading, a crystal ball, or any access to insider information. Consequently, I have little expectation of prospering by consistently buying low and selling high. In fact, prior to becoming a fixed income investor, my trading history boasted the opposite, buying high and selling low. Tis sad but true, over those years, I've given more to the market than I've taken from it. However, that's yesterday's news, and of no real interest. Of importance is that I'm patient, analytical, organized, pretty good at math, and always looking for that angle, strategy, or edge to help guarantee my market success. The Art & Science of Preferred Dividend Investing details my history, education and growth as a preferred investor and the lessons I learned along the way. I want to share that knowledge by introducing you to this effective, profitable, and safe way to invest in preferred equities.

Analyst’s Disclosure: I am/we are long PPHMP. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.

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