Hi, Bernard,
Here to pester you with a TA question or two. I like AFFX' long term prospects, as competitors haven't made any headway in this environment. They're a gorilla in their space, IMO (though George hopes ILMN will play David to their Goliath). In any case, since they reported earnings just a few weeks ago, along with a couple of deals, I would expect AFFX to trade on its technicals for a while.
I can't decide where the support is -- somewhere just below $17, I'd guess -- and what MAs might be best to use for it. Any help? Trickle is looking for a good entry, having managed to get out of SIAL apparently at its peak, and I'm feeling that this is a good time to put the money to work.
I have similar thoughts about ABGX, whose ABX-EGF seems sufficiently different from its small molecule competitors to have some chances, but it got whacked along with OSIP and AZN on Iressa's failure. I think it has equal or better chances as a monotherapy, and better chances as a combo therapy. ABGX has some burn, but its deal flow makes me think its cash cushion will last a long time. And since it trading near that cushion, downside should be limited. I don't expect any news for a while, and think it, too, should trade on technicals. Whatever they might be, I just nibbled a bit at $7.70 today, based on the above fundamental outlook.
Also watching MLNM, CIPH, ALXN, SCIO, and KOSP, though I have liquidity concerns about CIPH and KOSP.
Cheers, Tuck |
