>>>My broker just recommended that I sell my ASND shares and buy a biotech company who symbol is MAGN. MAGN just finished a secondary offering of 2 million shares priced at $8. I have had good luck with secondarys this year namely THRX, What do you think? My price cost for ASND is $ 23 7/8. My broker is est. that MAGN will double by summer after FDA approval.<<<
Is THRX the anti-prostate cancer, radioactive seed company, Theragenics? They did excellent this year. I was looking at them 6 months ago at 18...and I'm still kicking myself for not taking the plunge. Nice move.
Well...if you are looking as far out as mid-98, and you are sitting on ASND @ 23 7/8, I think you are likely sitting on a double right there. I guess you have to take a close look at the which one you would be more comfortable with. I don't know anything about MAGN, but with biotechs everything rides on the FDA approval, right? The FDA only approves a couple dozen new drugs per year, last time I checked, and if FDA approval is delayed or denied, your stock is in serious trouble. Conversely, if approval is met, biotechs always surge enormously after such positive news. But you know what? If the key drug/treatement you are looking forward to from MAGN is going to be waiting on the sidelines for FDA approval in mid-98, you probably have until Mar/Apr before the stock really begins to move in anticipation of it...after all, MAGN is probably still in the final Phase III or IV testing of the drug/treatment and preparing its report and presentation.
If it was me, and I was holding ASND at such an attractive level, I would sit tight. I believe that without a doubt, ASND should be up at around mid-30 by Feb/Mar, at the bare minimum. So that's a 46% return right there for you, at least. Then you could sell ASND and swap the position with MAGN, and position yourself to swing for the fences on that FDA approval.
But then again, I'm the same guy who passed THRX by @ 18...
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