3 reasons why Sirtex Medical Limited is still a great buy

Sirtex Medical Limited (ASX:SRX) shareholders should hold on for the ride!

| More on:

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

Sirtex Medical Limited (ASX: SRX) shares plunged as much as 60% on March 17 after the company's long-awaited clinical trial results came back less positive than expected.

Don't fret though, here are three reasons why Sirtex is still a great company to buy and why you shouldn't feel too bad for not selling at $39:

  1. No one saw it coming! A number of investment services, including the Motley Fool, acknowledged the risk with the clinical trials due mid-March but the vast majority opted to stay invested in the stock. So don't feel bad, even the best in the country didn't see it coming and most have remained invested.
  2. Professionals are buying again! Long-term significant shareholders have jumped back in or topped up their holdings, acknowledging that the share price fall was an overreaction, pushing the share price back above $20 after it hit $14.80 on the day.
  3. The result doesn't change Sirtex's core business! The primary endpoint of the study would have increased Sirtex's market but the result has no impact on its existing $200 million revenue business. In fact, the secondary endpoint proved that the existing business, the use of the radioactive SIR-spheres to aid liver cancer treatment, works.

Investors should note that while the headline results of the study were released by the company, the full results will not be known until the report is published in May. This could cause more volatility if the second endpoint result is not as rosy as expected.

Andrew Mudie has no position in any stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

More on ⏸️ Investing

Close up of baby looking puzzled
Retail Shares

What has happened to the Baby Bunting (ASX:BBN) share price this year?

It's been a volatile year so far for the Aussie nursery retailer. We take a closer look

Read more »

woman holds sign saying 'we need change' at climate change protest
ETFs

3 ASX ETFs that invest in companies fighting climate change

If you want to shift some of your investments into more ethical companies, exchange-traded funds can offer a good option

Read more »

a jewellery store attendant stands at a cabinet displaying opulent necklaces and earrings featuring diamonds and precious stones.
⏸️ Investing

The Michael Hill (ASX: MHJ) share price poised for growth

Investors will be keeping an eye on the Michael Hill International Limited (ASX: MHJ) share price today. The keen interest…

Read more »

ASX shares buy unstoppable asx share price represented by man in superman cape pointing skyward
⏸️ Investing

The Atomos (ASX:AMS) share price is up 15% in a week

The Atomos (ASX: AMS) share price has surged 15% this week. Let's look at what's ahead as the company build…

Read more »

Two people in suits arm wrestle on a black and white chess board.
Retail Shares

How does the Temple & Webster (ASX:TPW) share price stack up against Nick Scali (ASX:NCK)?

How does the Temple & Webster (ASX: TPW) share price stack up against rival furniture retailer Nick Scali Limited (ASX:…

Read more »

A medical researcher works on a bichip, indicating share price movement in ASX tech companies
Healthcare Shares

The Aroa (ASX:ARX) share price has surged 60% since its IPO

The Aroa (ASX:ARX) share price has surged 60% since the Polynovo (ASX: PNV) competitor listed on the ASX in July.…

Read more »

asx investor daydreaming about US shares
⏸️ How to Invest

How to buy US shares from Australia right now

If you have been wondering how to buy US shares from Australia to gain exposure from the highly topical market,…

Read more »

⏸️ Investing

Why Fox (NASDAQ:FOX) might hurt News Corp (ASX:NWS) shareholders

News Corporation (ASX: NWS) might be facing some existential threats from its American cousins over the riots on 6 January

Read more »