Powderject (PJP), once high flying Pharmaceutical has seen its share price drop from well over 700 in last October to hover around 500 till they dipped further to 353 in last 2 weeks amid longstanding rumours and concerns about Celltech’s (CCH) commitment to its joint venture with PJP, the Powderject Lidocaine pain relief product....
This even caused a sell recommendation on Monday by ING Charterhouse on Monday...
However a PJP spokesman said thursday afternoon that the agreement between Celltech and Powderject still stood...and that that Powderject Lidocaine was on course to begin Phase III trials later this year...
PJP spokesman immdediately found support from JP Morgan analyst Samir Devani who said that fair value for Powderject is 750-775...Devani also said: ‘Few companies have the opportunity to set a pharmaceutical industry standard – we believe Powderject is one of them.’
Further support for PJP came from Sharewatch in the Sunday Times today rating PJP a buy following the support by JP Morgan late last week which reckons the share's real value is about twice. And assessing the share " good speculative punt on a shortish time scale.."
Price stopped dropping on Friday for the first time since March the 7th and adding 1.5 to 354...
Chartwise, the price's been going down below the lower BB for quite a while...now seems to be moving to cross over...while the converged stochastics K and D moving flat at the completely oversold area at the same time...RSI also flat just above 0 line all indicating oversold for a while...MFI still heading down to hit the 20 line and OBV just ticked up also at the oversold area...
There is a good chance that 353 might be the bottom where PJP could start a fast upward movement in the short time...long term of course depends on further good news...
Overall it's worth to watch with a view of benefiting from a short term upward movement in the share price keeping in mind that phamaceuticals have been quite volatile lately...
Riz
This even caused a sell recommendation on Monday by ING Charterhouse on Monday...
However a PJP spokesman said thursday afternoon that the agreement between Celltech and Powderject still stood...and that that Powderject Lidocaine was on course to begin Phase III trials later this year...
PJP spokesman immdediately found support from JP Morgan analyst Samir Devani who said that fair value for Powderject is 750-775...Devani also said: ‘Few companies have the opportunity to set a pharmaceutical industry standard – we believe Powderject is one of them.’
Further support for PJP came from Sharewatch in the Sunday Times today rating PJP a buy following the support by JP Morgan late last week which reckons the share's real value is about twice. And assessing the share " good speculative punt on a shortish time scale.."
Price stopped dropping on Friday for the first time since March the 7th and adding 1.5 to 354...
Chartwise, the price's been going down below the lower BB for quite a while...now seems to be moving to cross over...while the converged stochastics K and D moving flat at the completely oversold area at the same time...RSI also flat just above 0 line all indicating oversold for a while...MFI still heading down to hit the 20 line and OBV just ticked up also at the oversold area...
There is a good chance that 353 might be the bottom where PJP could start a fast upward movement in the short time...long term of course depends on further good news...
Overall it's worth to watch with a view of benefiting from a short term upward movement in the share price keeping in mind that phamaceuticals have been quite volatile lately...
Riz
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