Telik Inc (NASDAQ:TELK)

Looks like a bargain, we'll see!

The world of major exchange microcap microcash biopharma has its own specific rules. Floats are tiny, volatility is sky-high, and trials are opaque. Dilution is a virtual certainty - either the drip of an ATM or the body blow of a large public offering. Playing with these stocks requires close daily attention to the price movement and any hint of upcoming catalysts, and even the most seasoned traders can find themselves deep in the hole very quickly.

I've seen startling gains in the last couple of years from stocks in this category like Repros and Rosetta, and just yesterday made my first real life foray into the zone with a purchase of Oxigene. I toyed with the idea of buying Telik at around 2 last year and then watched as it continued to degrade as low as 1.15 before it briefly spiked over 3 earlier this month on word of orphan drug designation for Telintra in MDS. Such is the nature of these stocks.

Telintra remains Telik's only viable asset, and the basic question for traders is whether the potential of the compound is low or nil. Those who consider the drug to have demonstrated moderate or high potential despite the market cap of 5M are almost certainly deluding themselves. However, even a low potential drug can generate considerable temporary excitement at such a low valuation and there are two ongoing phase II trials of Telintra in process. Interim data from both trials will likely be presented this year, but the exact timing is difficult to estimate.

I'm not risk-tolerant enough to create a stable of high-volatility lottery plays at this point, but Telik makes a good play for the CAPS game at this level. 1.6 seems to be a good entry point to begin tracking the stock more closely and maybe, just maybe, venturing in if the share price dips back below 1.2 without the pressure of negative developments.

Embarrassing at best. All the posts have already noted the deaths and that it kills people. As if that is not enough for you, this stock has a bad track record and it is falling faster then Cheney's approval rating. Not trying to get political (but it is true). Alright if you don’t know by now I really feel sorry for you. NEVER invest in the “cure for cancer” they will not find a cure they will find away to make you live with it. Don’t like that tuff break. The truth hurts. It is not like I want that don’t kill the informer. To be honest with you no company should be able to survive this. If it does I buy the CEOs a trophy for best killer that got away with it.

This is my vegas-style gamble for the week.

lousy management, questionable drug, all in all these is easy money selling short.

grab some points

Gotta love those pharma wannabes. Phase III trials a bust, no profitability, spend the money on lottery tickets--less risk. Come on TELIK, improve my score ;->.

small pharma company with a few things in the pipeline. success and take over, or slow growth over longer time say 5 years.

Telcyta works.

Despite its failure in the drug tests, it has been way oversold and still has potential to bring in other drugs.

No hope.

Nothing of value anymore.

huge investment must have results

will show positive results in phase 3 test

phase three results about to be announced will be favorable, delays in announcing results to date can only be explained by unusual survival benefits

I think there will be news regarding their drug line

bio meds are way over sold. This bling bling is an FDA approval away from a real gem.

Critical data due anytime