Discovery Laboratories, Inc. (NASDAQ:DSCO)

CAPS Rating: 4 out of 5

A biotechnology company, which develops its proprietary surfactant technology as Surfactant Replacement Therapies for respiratory disorders and diseases.


Player Avatar Momentum21 (48.41) Submitted: 3/16/2012 3:12:09 PM : Outperform Start Price: $2.81 DSCO Score: -92.21

Felt it was a good time to close and re-open. Started adding back shares at 2.85 now that the dilution has arrived. This doesn't have the same speculative potential at these levels but I also don't feel that the risk is what it once was...they do have a product to sell now and other products in the pipeline to push along as well...

Climb on my little DSCO...Climb on!

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Member Avatar MrSinnister (< 20) Submitted: 6/6/2012 3:08:51 PM
Recs: 0

It won't do so w/o any volume, which has dissipated after the spec play veneer wore off after the conservative May 3rd CC call. Was hoping the downturn would invite more spec investment, and it did start to, but Wall Street used a jobs report to, again, kill the market for only one day after shedding for weeks over the fate of Greece. I feel right now is a great time for reentry as DSCO could easily jump to seven after a pretty good short squeeze (2 mil so far) and the old 2mil/day volume trading, or at least accumulation. DSCO isn't moving b/c although MGMT has products to sell, they suck at promotion.

Disco should, however, start posting profit next 2Q as they're going to spend the duration of summer setting up the pipeline to sell Surfaxin by 4Q (why on Earth didn't they simply seek/obtain a partnership like Seattle Genetics after so many failures or have a sales team/hospital distribution network already lined up is anyone's guess as well).. Still, the stock is still at least a triple spec play at this level. Maybe with some volume, it will start getting the press that it fails to make itself, outside dilution, and we'll get some really steep movement. Look into it. FDA Approved drug, Surfaxin, and nebulizer, Affectair, no partnership, but prone to buyout rumors due to being in a M&A heavy Biotech sector...tremendous upside for the bottom it is now established fully...a market, infant Respiratory Distress Syndrome, that it can easily take a majority market share in, as well as expand into any market that is lung-based (they are planning development of more adult-based pharmaceutics.

They've simply been too conservative for their own good recently and too stupid to actually seek investment with conferences like other biotechs, which doesn't mean that in the R&D dept, they don't know what they're doing. Give it a shot, with a great short squeeze, DSCO can easily touch 3.50, and I can almost promise at least 6 by the end of August, as the option bets (meager b/c few people actually know/care about this stock---yet) can easily attest.

Member Avatar MrSinnister (< 20) Submitted: 6/11/2012 8:09:29 AM
Recs: 0

But this week has finally revealed the method to their madness as they were trying, with the 18 million shares released (it had already been planned at 2.8 b/f the runup after FDA approval of Surfaxin) to gain the capitalization to join the Russell 3000. They couldn't reveal this fact, or the short sellers would've swooped in like vultures trying to kill DSCO down sub 2's and their pricing, even with subsequent drops, still met the threshold after May 31 for market cap and liquidity, for entry. It hurt being a long in options, many expired, but you're about to see now volume, a nice run back up to 5 for the highs before the end of this month, and a very decent short squeeze this week. I think now is the best time to buy back in, as the entry is still going to be low, and the shorts will be scrambling to cover. If you're already still long, now it the time average down a bit and enjoy the run to 10 and beyond as Affectair could be sold in the EU as well as stateside, with both Surfaxin and Affectair being prepared to distribute by the last quarter. Good luck.

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