Is Peregrine's November Surge a Dead Cat Bounce?

Peregrine (Nasdaq: PPHM  ) saw shares jump up a very healthy 81% in November, but the stock is still down 75% from its 52-week high back in September, so it still has a long way to go to make up that ground. The stock crashed from its September rates after the bursting of incredible optimism around its non-small-cell lung cancer drug Bavituximab's phase 2 trial results, when the company revealed that the data from those results was handled improperly and thus inaccurate. However, this isn't to say that the drug doesn't work; Peregrine still has Bavituximab in trials for multiple types of cancer. This rebound in the stock may be showing that investors are now comfortable coming back to Peregrine at its lower valuation, for the promise it may still have.

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  • Report this Comment On December 06, 2012, at 3:14 AM, BSDetector wrote:

    A two month delay on a dead cat bounce? I could understand that for traders on Mars who are just receiving news of the Sept 24th share price drop. I can't see it happening 2 months after the fact however.

    What happened was simple. Shorts hit it hard at around $1.70 and dropped it by over 50%. They were forced to cover prior to December knowing that results from the investigation were due to be announced. Speculators & Day Traders pitched in and did their part as well as soon as they saw the volume spike. For the life of me I cannot understand why this was a big mystery to everyone. Many predicted the massive spike well ahead of it taking place for the reasons described.

    Any comments on Adam Fraudstain's allegations today? He has gone on the record twice this evening stating that PPHM management is was guilty of fraud and that it has been proven. He is thus far the only individual I know of who has stated this as fact. One must assume that he has inside information since he has now created the potential for a defamation lawsuit against THE STREET.

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