Sirtex Medical Limited (ASX: SRX) has new investors on its books.
According to an ASX filing this morning, approximately 6.6% of Sirtex Medical shares are now registered to Yarra Capital Partners.
Should you pile into Sirtex shares?
As can be seen in the chart above, Sirtex Medical has come under intense scrutiny over the past year, particularly in the most recent three months.
In October, a general meeting was held with few concerns raised around product sales, then an insider sold shares before a shock profit downgrade was released in early December. Finally, late last week the company fired its CEO, Gilman Wong, following an independent investigation into his selling of company shares.
But any potential concerns surrounding Wong's share sale only compound the issues the company faces in selling its product abroad.
In the wake of the profit warning, several analysts downgraded their Sirtex share price targets. Surprisingly, some believe the company is worth around $30 per share while others believe its shares are worth just $15. That serves to emphasise the uncertainty of the business and potential volatility in its share price.
Buy, hold or sell
Sirtex Medical was the market darling of Australia's biotechnology sector for a number of years. But with Mesoblast Limited (ASX: MSB) and countless others before it, the recent saga only reminds us that it is a high-risk industry.
Nonetheless, at today's share price Sirtex may be worth a punt. However, it should be considered a speculative investment, in my opinion.
