Hollis-Eden Jumps 30%

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Hollis-Edent (HEPH) is a very small development-stage pharmaceutical company. It has no revenue as has lost about $7 million each of the last couple of years.

The stock has been a world class dog falling from a 52-week high of $7.49 to $1.42. But, some of that changed today. The shares are up 30% to $2.16 on news that "data from an animal study showed its cancer drug candidate, HE3235, continued to prevent breast cancer tumor growth even after dosing ended," according to Reuters. "The lasting anti-tumor effect of HE3235 reported in this animal model of breast cancer suggests the compound is causing tumor cells to undergo apoptosis, or die," said Richard B. Hollis, chairman and CEO of Hollis-Eden.

Is the company worth its current $153 million market cap? No way to tell. The development of the treatment is still early and there is no revenue attached to it.

Crap shoot.

Douglas A. McIntyre