Folks, Captain Capitalism here again. Sorry for the long absence but the demands of my secret identity kept me away.
It is with heavy heart that I bear bad news to the public. My stock pick back on April 17 did not go well. Let me explain. The pick, Genta Incorporated, had a huge option premium on it because one particular cancer drug in its pipeline looked like it would make tons of money. When I made the pick, Genta was at $11.34, and within two weeks, the stock went to over $15. Then the news came from the FDA on the drug's phase II trials. Well, as advertised the drug did quite a number on melanoma cancer cells, but the toxicity of the drug was so high that the survival rate among patients remained the same. So, the drug has no near-term market applications and Genta drops like a rock. When I managed to bail out, it was at $2.85. Now, I had taken the $10 option for $3.20, so when the ordeal was over, I had a total of $6.05 to show for my investment of $11.34, a return of -47% over four weeks.
Painful as it is, we have to be honest with our investing public. For every two feasts of steak and lobster, you run across five hamburgers and one plate of bad coleslaw. Genta was a plate of bad coleslaw. Sorry folks.
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