On any list of biotech plays that might multiply in value in a relatively short period, Cassava Sciences (NASDAQ: SAVA) is likely to be near the top of the list. It's exploring whether its drug called simufilam is safe and effective to treat early-stage Alzheimer's disease, though its clinical trials have (so far) shed little light on the issue.

But you'd be taking a big risk by buying shares in hopes of this stock going to the moon. And there are three reasons why it's actually a good idea to sell if you're already a shareholder.

The biggest reason to sell Cassava stock: After an open-label phase 2 clinical trial of simufilam, the market reacted quite negatively to the release of new data that management spun as being positive. Cassava shares are down more than 25% over the past year, with a sharp drop on Jan. 24 when it published the data.

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Source Fool.com