Steve,
I am familiar with P&F & with the now more popular candlestick charts, but most of the time I try to keep it simple and just follow an OHLC barchart. (Sometimes just a "line" chart.<g> )
SGEN gave a "buy signal" on August 21 on its "daily chart",(that day its H was 4.40 the L 4.11 & closed at 4.26 up $0.08 on volume of 148,600, the upmove continued in the next 2 days & it has stayed on that uptrend since then.<g>)
bigcharts.marketwatch.com
That move started after the reported insider buying in June & early Aug & was corroborated on its "weekly chart" on Aug.25 when it broke off from the downtrend coming from its March H at 5.80
The advantage at looking at the charts on a daily, weekly, monthly as well as on a one minute, 5 minutes, 15 minutes, & 1hr basis is something I can't get with P&F charts & I like to see what "correlation", if any, is between a price "spike" & any news or other developments, like a broker or "analyst" "change in rating" something I can't do with P&F since the X & Os although they are able to show support levels & trendlines they don't give me some other information that I like to have.
I also like to check some of the "fundamentals" like the # of chares, insiders & institutional position, short ratio, BV, PE, PS, PEG, EE if available,last 3 or 4Qs of changes in revenues & "earnings-losses",its "profile", latest "news",look at its "web page", etc. <g>
SGEN has had already more than a 50% gain since its "buy signal" in August & the insiders that bought in June & August did some selling in Oct.& early Nov. However, the stock hasn't broken its nearterm uptrend in spite of these 2 days of lower action. It is still trading above its Nov.7 H of 5.97 & seems it may test "support" at the 5.70 to 5.75 level.
For the current 9Ms SGEN has a loss of $0.55/shr slightly above the $0.53/shr in 2005 & if the "estimates" are correct, the pending 4thQ should also show a "bad comparison" with 2005 since the EL for the Yr is around $0.75/shr vs. the $0.70/shr in 2005 & for 2007 the EL is still around $0.85/shr.
As you know, SGEN is scheduled to present at the ASH meeting in Orlando starting this weekend & last month it announced that it was starting a PI of its SGN-35 in 40 patients with Hodgkin's & other lymphatic malignancies.
The stock trades around 4.1xBV, the insiders & institutions both reportedly hold more than 30% each, the float is around 34M & the short ratio around 8.6x its average daily volume, down slightly in the last month.
As I mentioned, the stock traded Monday & Tuesday this week above its March H & I would now like to wait & see if it will find support at the 5.70 to 5.75 level. Once it can go above its recent H this week of 6.33 its next resistance is its Jul.2005 H at 6.52 & then the Dec.2004 H at 7.85 The March 2004 H at 10.90 looks "distant" at present.<g>
bigcharts.marketwatch.com
Bernard |
