Synergy Pharmaceuticals (SGYP) Stock Is Headed For Massive Gains

2

Synergy Pharmaceuticals Inc (NASDAQ: SGYP)

Synergy Pharmaceuticals is seeing strong growth; a continuation of momentum caused by yesterday’s big announcement that plecanatide met the primary endpoint in the second of two phase 3 studies. Today, we’ll take a look at the movement we’re seeing in the market and talk about what we can expect to see from the stock moving forward. So, let’s get right to it…

What We Saw From SGYP Yesterday

Yesterday, Synergy Pharmaceuticals saw massive growth in early morning trading after the release of data from the plecanatide study. However, after reaching a peak price of $9.40 per share, the stock slowly declined; settling at support at $8.42 per share; well above the previous close at $8.20.

What We’re Seeing From SGYP Today

Today is proving to be another great day for SGYP. The stock started running as soon as the gates opened; leaving support at $8.42 behind and headed for the top. Currently (11:02), SGYP is trading at $9.04 per share after a gain of 5.42% so far today.

What We Can Expect To See Throughout The Day

I’m expecting to see a continuation of yesterday’s growth from SGYP today. However, it’s important to remember the premise that history often repeats itself. With that said, today, the big number is $9.40. That’s because $9.40 was where SGYP was met with resistance yesterday. So, when we get close to this point, we can expect to see slowing in the growth as investors try to figure out whether or not we’re likely to see another breakout. If the stock does break above the $9.40 per share mark today, we can expect to see even more of a rally following the event.

What To Expect From Synergy Pharmaceuticals In The Long Run

In the long run, I’ve got overwhelmingly bullish expectations for Synergy Pharmaceuticals stock. The reality is that the plecanatide study went incredibly well; and following the strong phase 3b results, the company is planning on an NDA submission in the near future. In the world of biotech, these types of things tend to be catalysts that lead to strong growth in the stock the events are represented by. There’s also been quite a few rumors of a potential buy out in the near future. Many in the SGYP circle on Stock Twits are expecting a buyout before the submission of the NDA. However, Synergy Pharmaceuticals hasn’t yet commented on the rumors; so, for now, any talk of a buyout is simply speculation. Nonetheless, it would make sense for an acquisition to take place. So, we’ll want to keep an eye out for any developments there as a buyout offer would likely send Synergy Pharmaceuticals soaring in the market. Nonetheless, whether or not a buyout happens, I’m expecting to see strong growth in the long run. So, it may be time to start looking for dips in the value of the stock as they are likely to represent incredibly profitable buying opportunities.

What Do You Think?

Where do you think SGYP is headed and why? Let us know in the comments below!

Image Credit

2 COMMENTS

  1. Hello Joshua,

    Thank you for your encouraging analytic articles about Synergy Pharmaceuticals (SGYP) company. I bought the stock on June 19, 2015 for 9.18 in PM (not very wise action) and after more than one month and after long awaited P3 results it is at 9.12. I thought that after such successful results the stock price would go and stabilize at least at 10 or 11. People on Twitter are accusing short sellers (people who borrow shares from broker, sell them high and then buy them low to return them back to broker with profit thus causing the stock price falling down – am I correct?) for manipulating the stock price – which results in the price being kept in the range of 8-8.50 on average for more than one month (except yesterday). Do you think that either with or without any other positive news (other good results, FDA, buyout) the stock price will eventually stabilize above 9-9.50 with such a huge activity of short sellers (and maybe some other factors) even in the long run? Well, I start to be quite sceptical. BTW – should not be FDA instead of NDA in your article? πŸ™‚
    I look forward to your next articles – continue in your good job!

    Best Regards

    Miro Mikulasko

    • Hey Miro,

      I would love to say that without any further positive news that the stock is going to get close to the 10 range. However, I think you hit the nail on the head. Short sellers are creating massive resistance on the stock at the moment. Nonetheless, I do have an incredible amount of faith in SGYP and think that the shorts will get out of the way when the NDA is submitted. I would love to speculate about a buyout, but I just don’t think that now is the time to talk about it since there is no hard evidence. However, we do know that an NDA is coming. If you’re willing to wait until that happens, I don’t think that you’ll be disappointed. I’m sorry the shorts got you; it’s incredibly frustrating that many stocks in biotech are held down by short sellers….something needs to be done in that respect. Thanks for your comment! Ill chat with you again I’m sure!

      Kindest regards,
      Joshua Rodriguez

LEAVE A REPLY

Please enter your comment!
Please enter your name here