BUY Recommendation-SUPG

SuperGen Inc. (NASDAQ-SUPG)
Price October 4, 2010-$2.09

Never know what you are going to find when you go hunting for interesting value stocks.

SuperGen is sure interesting. It is a cancer biotech that actually has substantial royalty revenues, $1.79 per share in cash and is profitable ($.09 for the six months this year—not taxed).

Revenues are running just over $40 million a year with NO cost of sales since it is primarily royalty income. There are about 61 million shares outstanding and they have about $109 million in cash.

While SUPG is trading at 61% of our valuation, which is higher than we usually like, 84% of its market cap is in cash and they recently raised their guidance for 2010. They are working with Eisai and Johnson & Johnson on Phase III trials, which if successful will increase revenues.

What is not to like?

Average trading volume is only about 250,000 shares a day.

About SuperGen:
SuperGen is a pharmaceutical company dedicated to the discovery and development of novel cancer therapeutics in epigenetic and cell signaling modulation. The Company develops products through biochemical and clinical proof of concept to partner for further development and commercialization. For more information about SuperGen, please visit


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