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Biotech / Medical : AEterna Zentaris (NASDAQ: AEZS)
AEZS 2.720-11.7%Sep 3 5:00 PM EST

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To: caly who wrote (2)4/26/2011 3:21:40 PM
From: Gary Mohilner   of 22
 
I know almost all technicians will tell you stocks retrench after a run up, usually to Fibonacci levels. The question is has the top been reached from which to retrench from.

I believe that AEZS is dramatically underpriced considering both the price of KERX, but even more given its pipeline. Should AEZS move up to a market cap on par or greater then KERX the retrenchment could be substantial, but it would still be substantially above where it is today.

I'm not suggesting it will happen immediately, or that they'll be no correction from where it is today, but if it moves to say $3, the correction could be back to the $2.50 range before it moves up again. My point is that you never can be sure whether it will correct from today's price, or something far higher then today's price and today's price might be lower than you'll ever see again. It's your choice when you invest, just as it's mine.

Gary
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