Sucampo Pharmaceuticals (SCMP)
Finally, though the price of $7.60 clearly qualifies it as one pf the cheapest of the cheap stocks out there in the pharmaceutical world, that’s not the reason Sucampo Pharmaceuticals (SCMP) may be worth a look here. It’s the 30% slide we’ve seen SCMP stock suffer since peaking in mid-January. It’s not a pullback that’s bound to go unchallenged by the bulls.
But what, pray tell, sparks a 30% dip in the first place? In the case of Sucampo Pharmaceuticals, the 60% rally leading up to that peak may have had a lot to do with it.
The stock went nuts beginning in mid-November on the heels of then-impending news of a the beginning of the Phase 3 trial of pediatric constipation drug lubiprostone and then the onset of Phase 2 trials of a lumbar spinal stenosis.
While those two trials are compelling developments, the size of the near-term gain was just too much, too fast. The market’s taken all the profits it needed to since mid-January, however, and SCMP is now priced appropriately – and attractively - again as one of only a few truly great cheap stocks in the pharmaceutical industry.
As of this writing, James Brumley did not hold a position in any of the aforementioned securities.