CRA...SplitTrader is design for short term traders but what they have to say is very interesting. Notice they give Celera credit for being the first to map the entire human genome.
From The SplitTrader.com Candidate Newsletter Sunday 07/23/2000
CANDIDATE PLAY-OF-THE-DAY
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CRA - PE Corp Celera Genomics $112.00 +2.00 (+19.69)
. . .
Being the first to map the entire human genome, a 3-billion-character DNA sequence for making a human being, Celera (CRA) is transforming itself into a $25 billion gene machine. Celera, which in Latin stands for "speed", is quite a contrast from its former Perkin-Elmer, a slow moving producer of lab instruments. . . .
On Friday, Celera's President and Chief Scientific Officer, Craig Venter, said that he and his company were considering whether to branch out into making drugs for cancer and other diseases. Investors love when Biotech firms produce proprietary drugs and market themselves, as profit margins tend to skyrocket. This certainly makes for an interesting play moving forward.
Furthermore, the company currently 180 million shares authorized, with 57.1 million shares outstanding, so a 2:1 split for the company is possible. Recently, shares appear to be gaining momentum from Monday's low and could be ready to make up lost ground on route to the previous high ($143.75). We'll look for initial resistance to come at Friday's intra-day high of $116.
For advances through this level, look for $120 (previous high) and $130 to pose even tougher challenges. On the other hand, should we get a retracement prior to a run-up, look for immediate resistance to come at the $110 mark. Since CRA has shown significant volatility in the past, we'll give the stock a few points to oscillate around this level and place our stop at $107.50. If we do get a move over $116, then we'll raise stops to $112, to minimize losses. Look for hard bounces from support or advances through resistance as potential entry points, when followed by good volume (1.9m shares or more). We'll be looking to exit the play on 7/27, since earnings are after the bell.
Picked on July 23rd @ $112.00
Change since picked 0.00
boards.fool.com
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Message 14093372
NYTimes July 23, 2000
The Microsoft (and Gates) of the Genome Industry
nytimes.com
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