On Friday, one month after the last deep plunge of Affymax, Inc. (NASDAQ:AFFY) stock, a completely different scenario proved investor willingness to support the shares’ upward direction.
Two important and positive events rushed AFFY stock, leaving the hope that it deserves a higher fair value.
At the beginning of July, AFFY stock was traded within the range of its 52-week low. The volume traded in those days also allowed to assume that investors did not expect a price increase, despite the long-term oversold status of AFFY shares.
On Wednesday, AFFY was granted a price of $6.43 per share, which was a 2.28% pull back. On the same day the company announced its positive financials. AFFY reported collaboration revenue of $89.0 million and $52.8 million for the six months ended June 30, 2010 and 2009 respectively.
AFFY presented significant improvement of its diluted net income per share. For the six months ended June this year the diluted net income per share was $0.38, while for the same period last year it was $2.48.
In connection with the company’s collaboration with JapaneseTakeda Pharmaceutical Company Limited, it was announced that at the end of June the investments and the receivables from Takeda totaled $167.2 million.[BANNER]
On the next day, investors unlocked the upward potential of AFFY stock. Additional impact on the stock rush had the company’s announcement about some strategic plans of Affymax and Takeda to collaborate on the development and co-commercialization of the product Hematide.
At the end of the week, AFFY stock closed at $8.46 per share, surging 31.57% since its last sleepy Wednesday.
Today’s session will confirm investors’ attitude towards AFFY shares. If they close with a third in row upward move, the hope for an upward trend may appear.
