For anyone interested Rxi pharmaceuticals (RXII) trades on Nasdaq Capital Market at $3 per share , and is approaching the moment where it will reveal phase 2 results. Risky of course but if successful it could gap up big with a small float of only 16 million shares. here is some Due diligence info for anyone that wants to check it out http://www.biotechpicklist.com/biotechpicklist/rxii-rxi-pharmaceuticals/ Also the official company website for the company can be seen here http://www.rxipharma.com/ Basically in essence this company uses RNAi which is RNAi interference that means the ability to down regulate the genes of diseases so they are no longer expressed in the body. But unlike other RNAi biotechnology companies like ARWR, TKMR, DRNA etc. , RXII has chosen to do something different instead of a delivery vehicle (basically a shield around the RNAi strand) and has turned its RNAi drug compound into a drug compound that can be delivered through the body without degrading and without toxicity. Its sd-rxRNA platform is known as a self delivering oligonucleotide. For anyone interested before this major catalyst i recommend checking it out.
While I love seeing these posts here and I hope this tip pans out, I'm a bit suspicious with it being your first and only post... If this one is good, I'll look forward to your next tips
Problem: we do not have any clue about the probability of those phase II results. Very different from a stock with a profit track record and a market. In this situation it is a lottery ticket, except for the insiders. What do you have to say about whether they will succeed or not?
These biotechs with these drug pipelines that they put everything into are speculative. Which is not to say money can't be made - it can. But these speculative plays should be played by experienced investors and with small amounts of money - not something you want to bet anywhere near the ranch on. The best way to approach these is to research them ahead of time via reputable sources, filings, etc. Either buy pretty long range puts and calls (both) lightly ahead of trial outcomes, FDA decisions, etc, or perhaps a small long stock position with a put to protect the downside. I usually buy more calls than puts, since these stocks are usually already pretty close to zero, and can swell up 100, 200, 400% or more very briefly on good news. If the news is bad, the put is exercised and money likely made on the downside. If the news is good, the put is not exercised at that time, and money is likely made either exercising the call or on the small long stock position. Sell out most or all of the position on the good news when the stock swells up.
