Evoke Pharma Inc (NASDAQ:EVOK)

I used to enter red thumbs on crappy microcap biopharmas and then close them once I had ten points or so. I wanted the accuracy point and I was afraid that something would happen to cause the stock to go up 1000% KaloBios style while I wasn't watching. Now I've decided to just leave those red thumbs on since I'm losing more gains from closing them too early than I'm saving on the few that blow up. I think Evoke is a fairly safe bet for eventual low pennies, although the shell game might save them from ultimate bankruptcy.

Evoke's only drug EVK-001 for gastroparesis has failed all late stage trials, the original phase IIb and recently the phase III based on the BS post hoc subset from the phase IIb. The market crushed the stock, but not down to the level it should have, and management immediately took advantage of this by raising 13M from RDO's. Now there's 10M in the kitty which will keep the lights on for another year. Meanwhile management is justifying their existence by blathering about submitting an NDA for EVK-001 despite the failure of all trials. Good luck with that. A couple of months ago the company dropped a nonsensical PR about a "positive" preclinical pre-NDA meeting with the FDA. The only important word there is preclinical. The meeting was purely about CMC and other non-clinical sections of a putative NDA, and the FDA was probably represented by an intern. The company will supposedly meet with the FDA again about the clinical component of an NDA, and I'm guessing that won't go as well. No word yet about the timing of that meeting.

I won't be shorting Evoke because the share count is too low and I don't want to get screwed by any hedge fund games. I probably won't look at the stock again until the share price is under a quarter.

2016 AQXP? LET US FIND OUT WITH THIS $29 MILLION MARKET CAP GEM.