This Day On The Street
Continue to site
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

Top 10 Penny Stocks of 2010

7. Somaxon Pharmaceuticals (SOMX) is a specialty pharmaceutical company, based in San Diego, that focuses on treatments for diseases in the central nervous system

Closing Price: $4.94 (June 16)

Total Return (YTD): 357.4%

Developments in 2010: In March, the Food and Drug Administration approved Somaxon's Silenor as a new treatment for insomnia, news that pushed the company's stock above $9 per share. Jumping at the opportunity, Somaxon offered 6.9 million shares of common stock at the end of March at $8.25 per share. The stock has been on a steady slope down since and even a shrinking first-quarter net loss (announced in May) has done little to stem the decline. CEO Richard Pascoe said Somaxon will spend the second half of 2010 seeking a U.S. commercial partnership, building a U.S. commercial presence and preparing to launch Silenor.

Valuation: Only two firms (Oppenheimer and Jefferies) cover Somaxon, and both have a buy rating on the stock. With a price target of $13, Jefferies expects a 166% return over the next year. From a book value perspective, Somaxon's price-to-book ratio of 2.96 is below the pharmaceutical and biotech sector average of 5.27, according to Bloomberg. If the company were to find a commercial partner in the U.S., it may help stop the share price from sliding further from the March highs.

4 of 10

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
SYM TRADE IT LAST %CHG
ZANE $0.07 0.00%
DEAR $0.02 0.00%
CPE $8.82 0.00%
AAPL $130.28 0.00%
FB $81.53 0.00%

Markets

DOW 18,080.14 +21.45 0.12%
S&P 500 2,117.69 +4.76 0.23%
NASDAQ 5,092.0850 +36.0220 0.71%

Partners Compare Online Brokers

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs