Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Strategies & Market Trends : NetCurrents NTCS -- Ignore unavailable to you. Want to Upgrade?

To: Michael Watkins who wrote (5283)	1/8/2001 8:39:17 PM
From: Ally	Read Replies (1) \| Respond to of 8925

Michael, TA: BVF looks interesting as a short candidate. Chart has a head & shoulder formation, although the neckline hasn't been penetrated. A descending triangle is evident, with support at Cdn$50. This support level has been tested 3 times without breaking down. I'm thinking that when it does, the stock would zoom down in a hurry. FA: Last week company purchased the right to sell Cardizem product line in North America. Some analysts view the purchase not an outstanding deal at 2.7 times sales, when sales of this drug line can drop off quite sharply. Globe Vox column suggested that BVF investors should take their profits now. The stock is currently at a premium price, up 78% from 52 week low, price/sales of 17, and negative eps for 3Q year-to-date. Q4 report would be released mid Feb/01. There was some controversy last week when the CEO mentioned possible slowdown of generic drug sales, later refuted by the drug manufacturer. Worsening TA, and good probabiity of worsening FA... so I've taken a bet and shorted the stock. Your observations? From a TA perspective, typically one would short only after a breakdown of neckline?