Today's Under the Radar for Fairfax Media indicates that there could be money to be made in Pharmaxis its 40 per cent decline today due to a negative comment from an FDA committee in the US. Radar thinks there is more to it.
We hadn't tipped Pharmaxis because too much rode on the FDA decision, and quite frankly it was too big. Its market cap was over $500 million and there was a lot of bullishness priced into it.
Now its market cap is about $380 million (or so) there is less hype. But the fact is it is a long road and the stock will drift for some time. We will keep an eye on it but would not advise subscribers to punt on this one.
To see the article click: PHARMAXIS.
By the way, next week's issue is shaping up to be a hum dinger. We speak to a small cap fund manager who has achieved returns for the past three years of 30 per cent a year. We also look at companies that have reported, and we look at one that is trading at cash backing!