A Pullback Would Be Healthy For Repros Therapeutics
Disclosure: I have no positions in any stocks mentioned, but may initiate a short position in RPRX over the next 72 hours. 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.
After speaking with Repros Therapeutics' (RPRX) CEO, Joseph Podolski, I got a better idea of the company and its possible valuation. I think the company's two pipeline drugs, Androxal and Proellex, have the potential to do well in their upcoming clinical trials. However, as Podolski, or "Joe" as he informally likes to be called, was telling me: Data is everything. I don't believe sufficient data has been developed yet for Androxal and Proellex to merit such a high market cap for the company.
I believe a pullback will come soon for the stock because it's likely that some big holders will soon cash in on some of their Repros position. The selling pressure of the big holders will push the stock price down and put an end to its upward trajectory.
As shown in the latest 10-Q on page 11, the company has 5,362,348 potential common stock from stock options and warrants -- which, by the way, are excluded from diluted shares outstanding. The most recent warrant offering was from Feb. 7, 2011. To the company's benefit, very few of the warrants have been exercised. READ FULL ARTICLE HERE