When I sold half of my Pharmacyclic (PCYC) shares at $2.34, I knew I was making a good move; I'll always take a profit, especially a good double, rather than risk a sudden drop after a runup and come out with nothing. When I saw PCYC fly higher to the $2.65 range I started wondering if I really had done the smart thing after all, but then we got that expected drop.

After days of running up, the company did not release any news that could justify the rise in share price, so a drop was expected, and a drop is what happened. The share price slipped to under two bucks, but closed the week just over that level.

I fully expect PCYC to drop back into the $1.60 range again, if not lower, until news more significant than half the board resigning is released. I'll be buying back in when it hits that price or below and I'll wait for some real news.

Xcytrin, Pharmacyclics anti-tumour agent to treat various types of cancer, was denied by the FDA, so the company is relying on the remaining four drugs in the pipeline to keep them afloat. Three of these drug candidates are relatively advanced in Phase II trials, but any positive update could lead to sporadic spikes in share price. Any surprise news regarding Xcytrin would also be positive. In VFC's opinion, Pharmacyclics could look to Europe or Russia for approval, as was the case of Antigenics and it's Oncophage treatment.

For the time being, PCYC is approaching VFC's 'buy' level again. I wouldn't be surprised to see this stock south of $1.50 in the near future.

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