Endocyte (ECYT), a small biotech outfit from West Lafayette, IN, finished May as the worst stock performer in all the land. Shares were slashed 65.05% in the month, as the stock plunged from $18.11 per share to close at $6.33 per share yesterday. The stock had traded as high as $33.70 on March 21, 2014 and is now 81.2% off that peak. Shares were destroyed after the company announced that it will stop the clinical trial of its ovarian cancer drug with its partner Merck, on the grounds of “futility.” [adsense] From Investors.com: The companies said that the Data Safety Monitoring Board’s interim analysis of the known generically as vintafolide, was not showing any improvement in patients’ progression-free survival, so it said the trial should be stopped. The book is not closed on Endocyte, despite May’s destruction of share price. On April 2, 2014, Endocyte sold more than 5 million shares to raise nearly $102 million. This was an incredibly savvy move, considering where the stock price was then and now. As such, the company now has a war chest including $233 million in cash and 0 debt. With a market cap of only $260 million, ECYT is essentially trading at cash levels, limiting downside. Recommendation: Look for the bounce back to 10 (58% upside) over the next 6 months on the premise that most of the bad news is out, good news is possible, and the cash levels and lack of debt easily support the current share price.