2 Stocks Stopping the Presseshttp://www.fool.com/investing/general/2012/05/03/2-stocks-stopping-the-presses.aspx Rich Duprey
May 3, 2012
You saw the headlines. You know your stock price made a big move. But what does that portend for your investment's future?
By pairing the latest news with the collective wisdom of our 180,000-strong Motley Fool CAPS investing community, we might be able to discover whether your stock's latest exploits are a short-term hiccup -- or the start of a much bigger trend.
These two stocks both made big moves over the past five trading days -- one up, one down:
Source: Motley Fool CAPS, % change from April 12 to April 19.
72 inches down
Gout might be the disease of kings, but treating it has delivered anything but a princely outcome for the drugmaker. After a rocky road to market, Savient launched Krystexxa last year amid high hopes, but sales did not get a royal welcome, and as the hedge fund implies, it badly misjudged the market for its medicine. Savient generated less than $10 million in revenues last year, 65% of which was related to Krystexxa.
The lackluster performance could make it difficult for Savient to sell itself. It had tried to do that one time before, with thoughts that Pfizer or Bristol-Myers Squibb (NYSE: BMY ) might bite. With disappointing sales and its biggest debtholder pulling a Marie Antoinette, Savient seems to be in trouble and could, as CAPS All-Star rwpaules suggests, be sent to the guillotine.
While Savient naturally disputes the contention, tell us in the comments section below or on the Savient Pharmaceuticals CAPS page whether you think the drama spells the end of the biotech, and then add the stock to your Watchlist to see whether it can fend off the reign of terror.