2012-10-01 21:10:02 -

By David Moskowitz

Peregrine Pharmaceuticals (NASDAQ:PPHM) opened down in early trading, as
investors are still getting over the shock of the favorable clinical trial
results for bavituximab reported last month being erroneous. (see our prior
story here). As we wrote last week, the stock is likely to visit its lows for
the years given that the trial data that rocketed the stock to new heights this
year was unreal. And by that we mean it was actually Not Real. As the shares
sink back under $1.00, investors will have to contend with the possibility of a
NASDAQ delisting, which was threatening PPHM throughout the summer. A NASDAQ
delisting would be a negative event for PPHM, given the general lack of trading
and interest typically seen in stocks that move to the   OTC bulletin board.

Additionally, the lawsuits coming out against the company will not only take
time away from management running the business, but also will cost the company
money, and PPHM's cash position is only sufficient to fund operations through
April, according to PPHM's latest 8k filing. And that guidance was given prior
to the lawsuits.  Given the hype around the Phase II results, which lasted for
months, and the surprise that the data were ultimately deemed unreliable by the
company, it is hard to imagine that PPHM can say anything that investors will
believe at this point.

An article on TheStreet.com today offers investors an idea on how to trade PPHM
using an interesting options strategy, but our view is that investors should
simply just sell the stock and re-deploy capital into ideas that have credible
stories. Names we continue to like (in order of preference) include: Pain
Therapeutics (NASDAQ:PTIE), Merge Healthcare (NASDAQ:MRGE), Halozyme
Therapeutics (NASDAQ:HALO), Amarin Corp. (NASDAQ:AMRN), and Navidea
Biopharmaceuticals (NYSEAMEX:NAVB).



About PropThink

PropThink is an intelligence service that delivers long and short trading ideas
to investors in the healthcare and life sciences sectors. Our focus is on
identifying and analyzing technically-complicated companies and equities that
are grossly over or under-valued. We offer daily market coverage, weekly feature
stories, and a newsletter to investors who subscribe on PropThink.com. To learn
more, follow us on Twitter or visit us at  www.propthink.com



Disclaimer:

You should assume that as of the publication date of any report or letter,
PropThink, LLC and persons or entities with whom it has relation
ships(collectively referred to as "PropThink") has a position in all stocks
(and/or options of the stock) covered herein that is consistent with the
position set forth in our research report. In connection with PTIE and MRGE,
PropThink has taken a long position and  stands to realize significant gains if
the price of PTIE and/or MRGE appreciates. Following publication of any report
or letter, PropThink intends to continue transacting in the securities covered
herein, and we may be long, short, or neutral at any time hereafter regardless
of our initial recommendation. To the best of our knowledge and belief, all
information contained herein is accurate and reliable, and has been obtained
from public sources we believe to be accurate and reliable, and not from company
insiders or persons who have a relationship with company insiders. PropThink was
not compensated to publish this article. Our full disclaimer is available at
 www.propthink.com/disclaimer.






This announcement is distributed by Thomson Reuters on behalf of 
Thomson Reuters clients. The owner of this announcement warrants that: 
(i) the releases contained herein are protected by copyright and 
    other applicable laws; and 
(ii) they are solely responsible for the content, accuracy and 
     originality of the information contained therein. 
    
Source: PropThink via Thomson Reuters ONE
[HUG#1645400]