MEI Pharma Inc (NASDAQ: MEIP)
MEI Pharma stock is taking a crushing blow in the market today. Shortly following the open of the day, the stock started to fall dramatically. Since then, there hasn’t been even the slightest recovery. So, as you can imagine, investors are starting to talk about whether or not MEIP can keep the uptrends going. In my opinion, here’s why today’s declines are really nothing to be concerned over.
MEI Pharma Has Seen Dramatic Gains Recently
In the past month, MEI Pharma stock has seen gains of more than 20%! That’s absolutely massive. A good chunk of these gains have been caused by analysts upgrading their opinions of the stock and changing target prices that we’ve seen over the past few weeks. All in all, no matter how you look at the stock, it’s not hard to spot growth.
MEIP Is Small Cap BioTech
One thing that’s important to remember through today’s decline is that MEI Pharma is a small cap biotech stock. This industry has a tenancy to be incredibly volatile as news, studies, and FDA clearances surface. When we see growth in the market, on the long term scale, we generally are going to see a few points where the value of the growing stock corrects before climbing again. It’s all part of the small-cap biotech investing world. The stock is down more than 5% today, but considering the gains it has seen recently, a small correction is really nothing to be concerned with.
The Long Term Outlook Seems Great
In the long run, I think MEI Pharma still has plenty of room to grow. Sure, short term declines can be scary, but in the world of trading it’s best to check emotions at the door and consider all of the surrounding data. When you look at MEIP from all angles, it’s hard to imagine anything but growth in the long run.
What Do You Think?
Where do you think MEIP is headed and why? Let us know in the comments below!