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Pharmaceuticals

Exelixis made a long-awaited trend line crossI've been waiting on this trend line cross in Exelixis for quite a while now. It's been getting lots of analyst upgrades, and the valuation has been looking better and better. I actually bought some of this in anticipation of the break yesterday, so I'm in the green today. Exelixis's valuation got a 99/100 score from S&P Capital IQ. It has an attractive P/E of 8. There was an insider sale by the senior vice president on October 10, which is a little worrying, but the stock held its price over the last few days, and this trend line breach means the stock should be bullish for the near future.
NASDAQ:EXELLong
by ChristopherCarrollSmith
2
Things are looking up for Johnson & JohnsonJohnson & Johnson beat Wall Street's earnings expectations yesterday and raised its full-year guidance. The company has also been steadily settling opioid lawsuits, with another settlement rumored to be in the works soon. JNJ is rated highly undervalued by S&P Capital IQ, and its post-earnings run looks to be the slow, steady kind rather than a big spike. That's what I like to see. I've picked up a little JNJ and plan to ride it up to at least the 139.50 resistance level. I'm considering a long-term hold, although the political risk makes me cautious about this sector going into an election year.
NYSE:JNJLong
by ChristopherCarrollSmith
Alexion Pharmaceuticals is outrageously undervaluedAfter noticing some call buying activity in Alexion Pharmaceuticals today, I gave the stock a look. Analysts like Alexion. It has an 8.8/10 analyst summary score and an average price target of about $146.50 (versus the current price of about $113). S&P Global Intelligence rates it 85/100 for quality and 87/100 for financial health. Its growth stability earns a score of 62/100, which is great for a pharmaceutical company. Alexion has a nice, diverse portfolio of products that gives it some resiliency against changes in the demand for any one particular drug. But the most attractive thing about Alexion stock is its valuation. The forward P/E of about 10 is very low for a stock with such extraordinary earnings growth. Analyst forecasts for Alexion's earnings have risen something like 25% over the last two years, but the share price has fallen over the same period. Moreover, Alexion has beaten estimates for every single one of the last 8 quarters. S&P Global Intelligence rates Alexion's valuation 97/100 (extremely undervalued)! Today's headline from DJ Realtime News is, "Elliott Looks Forward to Continuing Dialogue With Alexion in Effort to Close Gap Between Current Share Price and Fundamental Value." Go to YouTube and check out my "Wall Street Petting Zoo" video titled "How to Determine the Fair Value of a Stock." There I describe how to use the Zacks "Price and Consensus" chart to determine the fair value of a stock. By this standard, Alexion is conservatively worth $175 per share.
ALong
by ChristopherCarrollSmith
ABBV remains a strong investment even after its recent runAbbvie has been surging lately after a bullish trend line break, but it remains undervalued at the current price. The analyst summary score for Abbvie is 9.6/10, and the average analyst price target is $92 per share. Personally, I think Abbvie's strong earnings forecast and 5.5% dividend yield justifies $100 per share. Call volume in Abbvie is very bullish today after its cancer drug Imbruvica beat a rival cancer drug in a clinical trial.
NYSE:ABBVLong
by ChristopherCarrollSmith
VSTM - Bear Trend ReversalBear Trend Reversal - Long term downtrend rejected with bullish RSI divergence on the weekly. These hops off a long-term bear trend reversals can be swift and powerful. I've played these before and won (DAN...TQQQ after '18 Christmas)..but I've also played these and lost (MAXR). I've previously played these directly on the instrument, but this time I'm playing this with 10 buys of $2 March 20, 2020 calls. Hoping to see a continued surge of implied volatility for these options as I don't plan on holding them through expiry. That being said, I've yet to really win on any of my options trades...but IV is on the up and up since my purchase so we'll just have to wait'n'see.
NASDAQ:VSTMLong
by Ascott156
1
Buy the dip in SAVA based on strong Alzheimer's trial dataCassava Sciences (SAVA) just got some positive clinical trial data on their Alzheimer’s drug. The result caused one analyst firm to upgrade SAVA’s price target from $3.00 per share to $6.00 per share. SAVA’s got a 9.4/10 analyst summary score, with most analysts rating the stock a “buy.” I entered SAVA Friday morning at $2.16 per share. It’s already up almost 100% from its share price last month, but I think it could continue its run next week.
NASDAQ:SAVALong
by ChristopherCarrollSmith
1
Some upside potential in Athenex after sales beatAnalysts have been lowering their earnings forecasts on Athenex, Inc., causing the stock to crash. However, the company not only met earnings expectations on its report this morning, but also beat sales expectations and raised its full-year revenue guidance from a 32.5% increase to a 37.5% increase year-over-year. That's a pretty big bump, and it could cause analysts to revise their views on the company in the coming weeks. One or two upgrades could send this stock climbing back to the $14-15 range. A long-term risk is the company's financial health. Athenex operates at a large loss and only has cash to fund operations until late 2020. The company is expected to make some progress toward profitability by then, but it will still be a long way from achieving that goal. So this is not a safe long-term investment; it's just a short-term scalp.
ALong
by ChristopherCarrollSmith
Nektar should test 21.34 on earnings strength and might fill gapNektar Therapeutics got a big upside surprise on its earnings report for both earnings and revenue. With earnings and revenue trending up, $21-22 is a fair price for the stock given analyst estimates from before the earnings report. There's resistance at 21.34, so we may initially get rejected from that level. In the near-to-mid-term, however, the earnings beat should lead analysts to revise their forecasts upward. Depending on the size of the revisions, Nektar could attempt a gap fill up to 27.85. (Average analyst price target is over $29.)
NASDAQ:NKTRLong
by ChristopherCarrollSmith
Ascending Triangle Breakout from Double Bottom for up trend ideaAfter years of going from top-left to bottom-right, there was a Double Bottom bounce with an Ascending Triangle currently sitting at the top of bounce. NASDAQ pre-market volume is quite nice, and the weekly volume has been consistent with price movement direction. The weekly EMA and SMA are moving from vertical to horizontal, the last three weekly candles are currently green, and the angle from the lowest weekly opening to the current price is pointing (from left to right) in an up direction. Good luck to all.
NYSE:TEVALong
by UnknownUnicorn5855881
1
MNK: DEAT CAT BOUNCE OPPORTUNITYMNK is dead or almost dead. Often times there is a dead cat bounce in stocks like these, as 'everybody' gets the same idea to throw some money at it. This is a high risk scenario but with potentially good risk to reward ratios. Disclaimers : I've clearly said this is high risk. This not advice to trade in securities. I am simply showing what may happen from a perspective of speculative opinion only. Your losses are your own if you enter a trade on this. Kindly sue yourself if you lose your money.
MLong
by Captain_Walker
2
FOMX - Foamix Pharma Reversal Pattern FormedOn October 18th, 2019, the FDA approved Amzeeq, otherwise known as FMX101 for the Israel based pharmaceutical company, Foamix. Amzeeq happens to be the first and only topical monocyline treatment to be used on acne patients. In anticipation of approval for this new product, shares of FOMX rallied from $2.53 per share on 10/08/2019 all the way up to highs around $3.63 per share. As it turns out, the anticipation for the approval is now correcting lower to what seemed to be overbought conditions in anticipation. FOMX 101 is expected to be entering into the market early next year with the hopes of being on shelves for January 2020. This new topical treatment will be entering the dermatology market which happens to be worth several billion dollars. This is very good news for a company that has been anticipating FDA approval for several years, these are make or break moments for new companies. If you look at the chart above, I posted what seems to be a hammer which I am waiting for the end of the day for confirmation. If this pattern holds, this may be a reversal pattern to hop into FOMX to join the reversal towards December price targets between $3-$6 dollars. Watch to see if the hammer pattern holds, then watch to see if the reversal in confirmed. If we see a reversal, we may be looking towards short terms gains of 25% and higher. Option markets are pricing in a high volume of $4 and $5 strike price calls for december. Cheers, AC
FLong
by RayleWoodInvestments
LABU - watch the volume and trend lineBiotech has had a hard time of it lately due to both political risks related to the election and litigation risks from the opioid epidemic. All of this, of course, on top of broad market weakness due to the China trade war. However, biotech earnings are better than most sectors this season, so the bear market likely won't continue forever. I've drawn a trend line on my 1-hour chart and am watching for an upward breakout. Today we had some nice volume come in as we recovered from oversold on the daily chart and achieved our first green day for some time. However, we fell short of the minimum 6 million shares I'd like to see to signify a true reversal. We also fell short of breaking my trend line. I expect LABU will fall to about 25.50 before it's likely to get a real bounce.
AMEX:LABULong
by ChristopherCarrollSmith
High-risk, high-reward drug catalyst play on ASRTAssertio therapeutics is slated to get an FDA ruling on its new drug application for cosyntropin depot by October 19. If the FDA approves the drug, the stock could move up significantly. Assertio has an 8.9/10 Equity StarMine Summary Score and is rated extremely undervalued by S&P Capital IQ. Despite relatively good earnings last quarter, the stock price is down due to a stock offering after the earnings report. Assertio also has a lot of exposure to litigation or regulation around opioids, because its most successful drug is an opiate. A new drug approval could shake the stock out of its lethargy and give it a really nice boost. Short interest in the stock is reasonably high, at 15% of float, which could contribute to a short squeeze. Of course, failure to get approval would send the stock tumbling.
NASDAQ:ASRTLong
by ChristopherCarrollSmith
2
J&J vs opioids (Johnson is winning)Fundamental analysis In one of the first state opioid cases, an Oklahoma judge ruled against Johnson & Johnson, awarding the state $572 million, well below the over $17 billion the state was seeking in damages. Meaning... out of the 17 billion, they lost only 3.36%, and they expect to appeal the case, probably lowering this amount. Technical analysis On a technical analysis, I still think the risk reward ratio is too small to enter a position now. But technicals are good (not great). So I am keeping this on my watchlist.
NYSE:JNJ
by dorfmanmaster