Browsing Posts published by CTeezy

Let’s take a look at AEterna Zentaris, Inc. AEZS is an oncology drug development company that is currently working on a NDA for their leading Phase 3 product, Solorel, which is an oral diagnostic test to catch Adult Growth Hormone Deficiency. The NDA should be completed sometime this year. They are also using the Investor Relations Group (IRG) to update investors on the progress of AEterna’s products through multimedia initiatives and social networking.

Today, the share price hit $1.68, with a 52-week high of $2.19. However, this was a $3-$4 stock 3 years ago and even hit $8 back in 2004. If this NDA for Adult Growth Hormone Deficiency passes, I can’t see why this price doesn’t eventually get back up to the $4 mark and maybe even higher. They are backed by Wellington Management, their top institutional investor and a sound asset management company. The share price has gone up over 36% in the past 3 months, so I would look to scoop some shares and hold for the long run. I’m currently not invested in this company myself, but if I see a drop back into the low $1.50 range, I may reconsider.

Keeping this one on the radar. Stay tuned…….

Technical Analysis: SPEX

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Happy new year everyone! I was kinda laying low for awhile and took some time off from looking at the market every day (which is very good to do from time to time). To update you from my previous post (back in October…..eek), I was still in on SPEX and had actually bought in a couple times more. My latest buy-in was at about .81.

While the stock wasn’t doing much to start the new year, Tendo mentioned to me that at the end of a trading year, most traders sell their shares to lock in their profits (or losses) for tax purposes for that year. Since this is a known thing, you’ll notice a lot of selling (or shorting) at the end of the year. These same traders hope that the price will drop so that they can buy in at a much lower price in the new year. SPEX closed out at .85 on December 27th, 2010 and didn’t close out again at that price until Jan 12th, 2011. I see some buying potential here.

Another confirmation of this is based on the SPEX chart below:
One month chart for SPEX

Notice the 4-day uptrend starting on January 10th. However, what I also want you to notice is the RSI (Relative Strength Indicator), which measures the momentum of a stock’s price movements and the speed it changes at. The RSI oscillates between 0 and 100, and it’s been known that anything over 70 usually signifies the stock as being overbought, while anything under 30 signifies it is oversold. So it looks as though SPEX may be a bit overbought right now.

My technical prediction: I’m looking for a high volume day tomorrow, but a narrow range of trading compared to the previous days. I feel we’ll see some gains, but not huge ones. If this happens, prepare for a red day on Monday. This is solely based on my technical analysis, so if major news comes out announcing, say, a major Pharma buyout, then up we go!

And of course, please do your own DD before investing in any securites.

Rollercoaster Ride: Spherix

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What a crazy day today was! In case you didn’t hear, Spherix announced that their Phase 3 Trial of D-Tagatose for treatment of Type 2 Diabetes revealed satistically significant reduction in HbA1c (blood glucose) levels. This shot the stock all the way up to as high as 2.80 Pre-Market! I was pretty stoked, since this was one stock I’ve been following since the beginning of this year. It was leveling out at the 1.70 range, which I was okay with. A 25% gain is good in my books. The sun was shining after 2 days of rain, my iced coffee tasted much better, and work was even quiet in the morning. It was going to be a good day.

Not so fast, Teezy.

At sometime around 1PM today, I walked out of a meeting I had and went to see how SPEX was doing. My jaw nearly hit the floor. The price plummeted to 1.18! What the $*#@ is going on?? This can’t be happening, can it? I felt like I was living my GNVC nightmare again. Then I looked over to a related article:

Spherix Announces Institutional Investors Purchase $5.25 Million of Convertible Preferred Stock and Warrant

The company sold $5.25 million of shares and warrants to institutional investors to continue development on D-Tagatose as well as corporate reasons. I was livid, but as I thought about it, it made sense for the company. It sucked for us investors out there though. It also brought me back to that pain point from my past: not capitalizing on my gains.

However, all hope is not lost. What’s next for this company is they are going to either look for a Big Pharma to buy them out, or if that doesn’t happen fast enough, they are going for FDA approval of D-Tagatose. Both outcomes will shoot the stock up. Let’s take a look at it’s 6-Month chart:

6-Month Chart for Spherix, Inc.

I looked up the company’s volume since it’s inception into the market, and today was it’s highest volume ever (it more than doubled the 5M volume it had back on November 16th, 2009). Also, it’s 6-month low is around $1.00. As crazy as it sounds, I’m hoping the stock gets closer to $1.00 so that I will be able to scoop up some more shares. I’m more in this for the longterm, so I don’t mind having to wait until FDA approval to see this stock skyrocket. Pay attention tomorrow to see what the stock does and how high the volume is. I have a gut feeling it’s going to be up on the day but still drastically below the range it was at before noon today.

Tomorrow is definitely a two-coffee day……

I stumbled across this today even though it’s a week old. Spherix announced that it’s Phase 3 product, D-Tagatose, “has been selected as one of the top 10 most promising cardiovascular/metabolic therapies in development,” according to a business analyst group assembled by Windhover Information. Spherix plans to announce the Phase 3 results in the next few weeks, and according to the article, “to date, there do not appear to be any significant safety concerns in the Phase 3 trial.”

Windhover Information Names D-Tagatose One of Top 10 Most Promising CV/Metabolic Drugs in Development

What to Watch For: OXGN

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I was searching through some stocks today and stumbled across this little gem that definitely popped up on many traders’ scanners: OXGN. The company, OXiGENE, Inc, just revealed positive results in a Phase 2/3 trial of it’s lead candidate ZYBRESTAT, which is working on a treatment against non-small cell lung cancer. As a result, shares closed out at a 15% gain and closed at $0.311, reaching a high of $0.39. I’ll be watching this stock tomorrow as it looks like we may start to get some support at the $0.30 mark, with a 52-week low of $0.25. With volume at 18 times its average (24.51M today, 1.36M avg.), I’ll be looking to hopefully scoop up some shares at $0.30 or maybe even the high $0.20s and see how much upside ZYBRESTAT really has.

GNVC

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Observing the market, I noticed an old friend of mine GNVC jumped 16% on the day alone, going up to .58 AH.  I was pretty disappointed in this because, having put so much research into this company, knew that they had a lot going for them and that .45 a few days before was the perfect entry for me.  I made the decision to lock in my small gain with DDSS and put my money into GNVC, despite the fact that it was pretty much between a Support line (.45) and Resistence line (.65).  I’m very interested to see if this will break the .65 mark, because there isn’t any resistence until 2.95.  No news in 3 days with 2.4M volume, 600K over its average?  Something is going on here (whether it be true or just a massive pump-and-dump, only time can tell).

Observing the Market

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After Thursday’s huge drop, many questioned what’s going on with the market.  Are we looking at another October 2008 crash?  Probably not.  Time heals wounds, and people (especially short-term traders) tend to forget what happened weeks ago, which is what I feel is going to happen here.  Now I don’t know of anything to be concerned about right now, but a good way to keep up with the market is by keeping notes.  You want to look at these types of events and jot down everything you can remember about the event, including prices for certain stocks you may or may not be holding.

I’ve kept my eye on certain stocks for awhile now and learning about how they react to certain news events.  If anything, take a look at these stocks and see what they do:

RPRX – Repros Theraputics, a biopharm company for oral drugs, has until June 14th to hit NASDAQ’s $1.00 compliance rule or it will be taking off of the stock exchange.  It must stay above that $1.00 mark for 10 days straight.  Look for this stock to increase in the coming days, or perhaps even reverse-split to get above that $1.00 mark.  If anything, this is a quick trade.

XOMA – XOMA Limited is another biopharm company focused on treating inflammatory diseases.  They, too, are threatened to be delisted and their 6-month window has already passed.  However, they’re plan to appeal for continued listing on the NASDAQ and have until September 13, 2010 to present a compliance plan or they will go to the pink sheets.  Keep an eye on them, for positive news seems to shoot this stock up.

DDSS – This stock has a hard enough time shooting up when good news develops on it.  It seems as though Thursday really shot this stock down and plummeted it through support levels.  I’d say it’s safe now to buy, but I would also wait and see if it drops any further before venturing on.

Keep track of what’s going on as much as possible.  Write it down, and write down what you’re thoughts are on the day.  Always do your own DD, and you will understand how these stocks do based on the news presented about them.

DDSS up over 12% on the day

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Labopharm busted through a tough resistance point in the mid 1.50s to end up at 1.65 at the close and 1.67 AH.  I would say that I knew this was going to happen all along (hell, I even posted about this happening a couple months back).  But truthfully, I did not expect this.  No news, volume 12.5 times the amount from yesterday, and a huge break through the 50 day MA and quickly approaching the 200 day MA at 1.75.  Pump and dump? Possibly. They’ve been FDA approved for Oleptro and the stock did go to the $3 range but dropped after the shares became diluted.  Even with positive news the stock hasn’t budged much.  Is something on the horizon for this company?  I’m looking forward to the pre-market activity tomorrow.  Keep an eye out to see where this one goes, and please do your own DD before making a decision on any stock investment.

ACAD up 15% today

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Acadia Pharmaceuticals broke though a tough resistance point today, some time after 11am this morning, and skyrocketed up to highs it hasn’t seen since October.  It’s up to 1.84 after hours without much news at all.  Although I am excited about this jump, I feel as though it will need to retest a new support level in order to steadily increase in the future.  Look for a bit of a pull back in the next few days before this stock starts trying to break past that $1.89 mark, which looks to be a big resistance level.

What to watch for: ACAD

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O&T has had a rough couple of weeks, especially with the news regarding GNVC stopping their Phase III trial of TNFerade on pancreatic cancer.  All we heard from this drug was positive news, unlike CTIC and their drug Pixantrone.  Regardless, GNVC has some potential to get back up to where it was last month, but I think it’s going to take a long time.  What Tendo and I have learned about this company is that it’s stock price only goes up with positive news, so look to see the price drop if you don’t hear anything about it and be patient.

Moving on, one play I’m looking at right now is Acadia Pharmaceuticals.  Acadia develops and markets drugs focused on treating the central nervous system.  Their portfolio includes pimavanserin (which is in Phase III development for treating Parkinson’s disease psychosis) as well as a drug in Phase II for chronic pain  and another drug in Phase I for glaucoma.  Remember, stock prices for biotechs thrive when they succeed in phase testing (or tank as in GNVC when testing is discontinued).  Back in September they were up to $5.80 before tanking due to not being able to meet one of their endpoints in Phase III testing.  From a technical standpoint there looks to be some resistance at the 1.55 level and support at 1.40.  Look for this to close the day out above 1.55 or fall to the low 1.40s before buying this stock.