Onconovas Recent IPO Beginning To Catch On With Biotech Investors
Scott Matusow | Aug 05, 2013 08:14AM ET
The biotechnology industry has been one of the best sectors in the market over the past year. The advent of several acts put in place by the government has made it easier for many of these companies to gain approval. Additionally, it used to be extremely difficult for small cap biotech companies to finance running multiple clinical trials. However, cheap debt has given many companies today the luxury of being able to afford running these expensive clinical trials without going out of business. This combination has sparked several private biotech companies to do an Initial Public Offering (IPO).
These biotech IPO's can be very lucrative if traded correctly. Usually it takes time for the market to find a fair value for these stocks, as investors speculate on how much the company should be worth. This can either leave these stocks severely undervalued or overvalued for a period of time. This week, we believe a new IPO is greatly under speculation valued and could very well be a double by the end of 2013.
Onconova Therapeutics (ONTX) is a biopharmaceutical company that focuses on developing small molecule drug candidates to treat cancer. Onconova recently did an IPO priced at $15 a share on July 25, 2013. Investors were very bullish on the company, as it opened at $25 per share. The This article is intended for informational and entertainment use only, and should not be construed as professional investment advice. They are my opinions only. Trading stocks is risky -- always be sure to know and understand your risk tolerance. You can incur substantial financial losses in any trade or investment. Always do your own due diligence before buying and selling any stock, and/or consult with a licensed financial adviser.
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