KING, CYTC, ADRX
KING, CYTC are recommended companies but for KING I would wait for a bounce off the 50 day moving average at about 54.I'm guessing that KING is down due to the proposed merger with MRX.
Traversa, Pharmaceutical Analyst with Mehta Partners says, ''I believe we will see more consolidation among large pharmaceutical companies, and cross consolidation among large pharmaceutical companies and biotech companies. I also believe that the sector where we should see the largest M&A activity is among specialty pharmaceuticals, the profitable, fast growing, smaller pharmaceutical companies: Elan (NYSE: ELN - news), Shire Pharmaceuticals (Nasdaq: SHPGY - news), Watson and King Pharmaceuticals (Nasdaq: KING - news).''
From the Oberweiss Mid Cap Fund Report. King Pharmaceuticals (KING 54 5/8) buy pharmaceuticals that are not profitable to major pharmaceutical companies and then markets the products and makes them profitable. "They have been very successful at doing this," says Jim. King has exclusive marketing rights to a drug called Ramipril, which reduces the risks of heart attacks and strokes. He is upbeat on King's outlook and believes their stock offers great potential over the next couple of years.
CYTC nearly doubled since a buy triggered on 12/17 on high volume. I've held CYTC got stopped out before a correction and re-entered.
ADRX I mentioned might have reached a top and it is looking like its going into corrective phase (earnings won't be out for another week or two, company doesn't know yet the week of the 7th or the 14th)
Other favorite holdings include: Cytyc (CYTC 66 1/2), makes a product called ThinPrep pap smear, which increases the accuracy of detecting cervical cancer by over 50 percent using traditional tests.
Basically for the long haul, I like all of them, but I still maintain my trailing stops and manage to get stopped out after 1 day of correction instead of staying for the inevitable 2-4 days. I still consider myself 'bullish' on all three. |
