After announcing an increased stock rebuyback program, Spectrum Pharmaceuticals (NASDAQ:SPPI) is up 4% this morning. SPPI’s board previously announced allowance for $25 million to repurchase the company’s common stock, however, this morning’s changes increase that to $100 million. Spectrum has two drugs on the market, Fusilev and Zevalin for use in oncology, with an array of development programs. Analysts put EPS for 2012 at $1.56.
Investors sentiments is mixed; Shorts make up 36% of outstanding stock and SPPI showed a bullish run in the months leading up to its $17.48 high in early July. SPPI may be more reasonably valued since falling from the high, but if the company moves on momentum again, expect it to be significant as Shorts squeeze the stock up. Spectrum should rise no more than 5% today.