To: Solid Play
John, there is an IGT thread at Medical/BioTech Stocks, where I got this note....
From: dan byrne
Mar 9 1997 12:06PM EST
Reply #1 of 2
Solid,
I pulled this report off "Emerging Growth Stocks" a newsletter by Louis Paquette:
SPECIAL REPORT
IGT PHARMA - +$0.13 to $0.94
Pre-Clinical Results Spark Buying Frenzy
Three weeks ago, I wrote that: "I don't believe it will take very long before enough
savy investors who understand the biotechnology business to recognize IGT's
excellent value and begin bidding up the price." Now we are half way to my 6 to
12 month goal of a triple in just a few weeks. What I did not know, was that the
company was about to receive some blockbuster news, some "dumb luck" came
into play as well. Here's a revised analysis of the situation as it sits now.
IGT hit new 52 week highs this week, touching $0.99 on Friday for a 98% gain from
when it got featured just a few of weeks ago at $0.50. News late Tuesday this
week, on positive results by the BC Cancer Agency on the company's lung cancer
drug, Amhydrovinblastine (AVLB) sparked a buying frenzy the balance of the
week, on escalating volume, with a quarter million shares of trading Friday. This
was a stock that, until a few weeks ago was "trading by appointment". It should
show up in the new 52 week high, and percentage gain lists over this weekend.
We were very pleased to hear that a few readers we've heard from got in early.
I called Kirk and Daniel yesterday to find out more. My understanding is, that the
sample is human lung cancer tissue, living within mice. Not only did the tumor
shrink 7 times smaller than the ones treated by Glaxo's drug, I am told the mice
were in much healthier shape than the others, and that the drug is less toxic.
Looks like we could have, not just an alternative to the standard, but something that works so much better, and on such a serious and widespread disease, that
you would figure the medical community would be very anxious to rush it through
clinical trials. (just my own conclusion, I haven't run that by anybody yet). I will be
heading out to UBC again next week if possible and get the complete story on this
first hand.
TECHNICAL ANALYSIS
I originally expected IGT to encounter some initial resistance between $0.80 and
$0.85. This news, and the amount of attention IGT is attracting now, changes
things. It seems to have a life of it's own, but a rough guess would be that support
will now be around $0.80 ($0.75 would be a perfect 50% pullback, but I doubt it
will get there) and resistance will now be here, at $1.00 (a big even number, as
well as a 100% move in a short period), and then at $1.25 (the last big financing
price), and then at $1.50. The stock may therefore establish a new trading range
between say $0.80 and $1.25 for now. Then again, some smart portfolio manager
at mutual fund could come along and just snap up the entire float to $1.50, and
that may be it. Anything could happen, so use your own judgement. Talk to Daniel
or Kirk yourself to get a better feel for it, if you're not sure what to do.
All I know for sure, is that IGT is turning out to be like PSP - Pacific Safety
Products - a different business maybe, but both extraordinarily undervalued,
quality, boutique, emerging growth situations, that the world was about to
discover. We just managed to step into it ahead of time (and just in time, for that
matter). And in the future, I will be using the IGT and PSP as models of examples
of the type of company I will be targerting for upcoming issues of EGS.
Unfortunately, these situations are difficulct to find, and don't just come along
every day. For example, I followed PSP for over 6 months before I felt the time
was right, IGT for about a year.
Louis Paquette
Author and Publisher,
EMERGING GROWTH STOCKS
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Dan Byrne |
