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To: SusieQ1065 who wrote (8542)	7/25/2001 9:41:04 PM
From: SusieQ1065	Read Replies (1) \| Respond to of 208838

Technical Analysis and review of earnings report on ABGX.. Abgenix (ABGX) 27.50 +1.24: Abgenix reported its second quarter results last night and shares in the company are bidding higher despite a wider than expected loss. Specifically, the company's quarterly net loss rose to $14.8 million, or 17 cents per diluted share missing the consensus estimate by 3 cents. Yet ABGX investors are looking towards the future and many believe in the prospects for the company's XenoMouse technology. So what exactly is XenoMouse technology? Well, Abgenix has come up with a way to make fully human antibodies in mice. As an important added benefit, the company has developed a way to generate the human antibodies while leaving the mouse's immune system intact. In other words, XenoMouse eliminates the need to engineer each antibody product candidate by enabling these transgenic mice to capitalize on the natural power of their immune system. The mice produce a broad repertoire of high affinity antibodies exactly as if they were human. At this point, it's probably clear the XenoMouse product isn't going to have the mainstream appeal or understanding of a Coca-Cola. But the technology is potent and the potential market opportunity is staggering. In fact, it's been estimated the monoclonal antibodies market may be as large as $50 billion over the next ten years. From an investment perspective, it's the large market potential in conjunction with the XenoMouse technology that's the key. Abgenix has the leading technology in monoclonal antibodies and this makes them flexible from an operational standpoint. From a technical standpoint, the ABGX chart is beginning to show some promise. The shares sold off hard prior to the company's earnings release, trimming approximately 42% off prices paid at the beginning of July. While still deeply oversold, the stochastics are beginning to turn up here and today's activity has the potential to generate a buy signal on the candle charts. Look for first resistance in a band between 28.75 to 29.25 with more important overhead in the area of 33.00 which approximates its 100-day moving average as well as a 38% retracement of the recent sell wave. First support (and important support) should be evident at 26.20 which constitutes this morning's post earnings report opening price. -- Michael Ashbaugh, Briefing.com