LaJolla Pharmaceutical Company is having a bit of a tough time in the market. However, if you’re a bull on LJPC, chances are that you’re not concerned in the least. The reality is that what we’re seeing in the market today is nothing more than normal activity and gains are likely to continue soon. Here’s why…
LJPC Climbs On Analyst Price Target Boost
Yesterday was a big day for LaJolla Pharmaceutical Company. Investors found excitement after Chardan Capital lifted its target price on the stock increasing it to $80 from $60. In the analysts report, the firm explained that they are confident with regard to several experimental drugs in the company’s pipeline including JLPC-501, LJPC-401, and LJPC-30Sa/b. Following the news of the price target boost, LaJolla Pharmaceutical Company saw dramatic gains in the market rising by more than 25% in a single trading session.
What We’re Seeing In The Market Today
Unfortunately, today hasn’t been such a strong day for LJPC. As a matter of fact, we’re starting to see declines on the stock. Currently (12:29), LJPC is trading at $43.76 per share after a loss of 0.32% so far today. However, as mentioned above, the bulls really aren’t concerned.
Why Bulls Don’t Mind The Declines
There’s no doubt that declines are never a good thing. However, today’s declines on LaJolla Pharmaceutical Company are something that the bulls really aren’t concerned about. That’s because what we’re seeing in the market today has nothing to do with bad news; instead, it’s simply normal market activity.
The reality is that price movement in the market tends to happen through a series of overreactions. The gains we saw yesterday were a bit exaggerated as investor excitement drove LJPC higher than it should have gone. Therefore, the declines today are simply a correction to yesterday’s overreaction ultimately bringing the stock down to a more sustainable rate before growth continues!
What We Can Expect To See Moving Forward
LaJolla Pharmaceutical Company is a great company with one heck of a pipeline. The promising pipeline was the reason for the upgrade and remains the reason for overwhelmingly bullish opinions on the stock, including my own. With that said, I’m expecting to see more gains moving forward.
What Do You Think?
Where do you think LaJolla Pharmaceutical Company is headed and why? Let us know in the comments below!