This Day On The Street
Continue to site
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

The 5 Dumbest Things on Wall Street This Week: June 7

Synta's Sorrow

Look 5 Dumbest fans, we're not kidding when we say we want Synta (SNTA) to succeed. Seriously, we take no joy in flagging the foibles of a company dedicated to combatting lung cancer, even if its principal drug does have an utterly unpronounceable name.

That said, it is our sworn duty to shine the spotlight on corporate shortcomings wherever they may reside, whether it be cupcake or cancer companies. And that's why we cannot ignore the mistakes that led to a 34% shellacking in Synta's shares Monday.

Sorry Synta, but that's what happens when you put the ganetespib before the horse!

To put it as simply as possible, a Phase II trial result revealed at the ASCO Conference on Monday did show that ganetespib improved survival in patients with advanced lung cancer. Nevertheless, the difference in patient deaths was relatively small and certainly not statistically significant enough to impress anybody, especially Synta investors who promptly took the stock to the woodshed.

Even before those lackluster results were publicly revealed, however, Synta was already pushing patients to enroll in a phase III study of ganetespib in second-line lung cancer. As to why they think skipping ahead to the next level without truly clearing the previous bar will get them closer to an FDA approval for their drug, well, we have no clue, and already-skeptical investors clearly feel the same way.

"If there was any enthusiasm for ganetespib going into the ASCO meeting, it's likely taking a hit now that investors have fixated on the anti-PD-1 drugs from Bristol-Myers Squibb (BMY) and Merck (MRK), says TheStreet's biotech ax Adam Feuerstein. "Unlike Synta's offering, these drugs are producing some of the strongest responses to melanoma ever seen and are also targeting lung cancer."

Sad to say, but Synta seems to be heading in the wrong direction.

Even worse, they feel the need to sprint.
2 of 5

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
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Real Money

More than 30 investing pros with skin in the game give you actionable insight and investment ideas.

Product Features:
  • Access to Jim Cramer's daily blog
  • Intraday commentary and news
  • Real-time trading forums
Only $49.95
14-Days Free
14-Days Free
CLWR $0.00 0.00%
AVEO $0.90 -2.20%
GOOG $710.68 1.30%
SNTA $0.39 -0.97%
SMG $68.06 -0.09%


Chart of I:DJI
DOW 17,714.82 +54.11 0.31%
S&P 500 2,055.33 +4.70 0.23%
NASDAQ 4,728.7690 +11.6750 0.25%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs