It may be that the share-price of Sirtex is entering a broad trading between $19 and $29 after the dramatic fall from grace on the 17th March 2015 to $14.80 from $40.
There have been two higher highs since then with support appearing at $19 finding resistance at $29.25, but centered about the 50% Fibonacci level at about $27.50.
After the most recent peak. the share-price eased back a little, but today the price again rallied forming a bullish engulfing pattern on the previous day’s candle.
Some analysts have been predicting sub $15 prices for the company, but at present there is no sign of this eventuating. Sirtex has been ably led by Mr Gilman Wong over the past 10 years or more with steady gains every year in dose sales and revenue.
In the absence of any down-turn in sales, support for the company still seems to be strong. The recent Sirflox trial study abstract has confirmed evidence of the benefits their SIR-Spheres product in treating liver metastases from colorectal surgery, but it would seem that just adding SIRT to the standard chemotherapy regime for metastatic disease provides no significant overall improvement in Progression Free Survival. This may be due to continued growth of the Extra Hepatic Deposits.The evidence for using SIRT for the liver tumours in diffuse metastatic disease mCRC is thus somewhat ambivalent at the moment.
CEO Gilman Wong has made no secret of his desire to grow Sirtex by acquisitions as well as by internal growth ,and the time would seem to be ripe with cash on hand, no debt on the balance sheet, revenue that is still growing and the capacity to launch a capital raising should a suitable acquisition arise.
Sirtex has the geographic spread, the marketing nous, and stable management to make an astute offer for any company needing assistance with commercialization.
There are of course a myriad of factors which could intrude on such a strategy. The evidence to me suggests that the share-price could oscillate in a trading range for the present.
Should the need for a capital raising to fund a significant acquisition arise, it is possible that it could be pitched at about $15. A prudent take-over could greatly enhance the prospect of stable growth in the years to come. Gilman Wong may well be the man to make it work.