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By Daniel Dicker
05/13/09 8:14 a.m.
Priced rather aggressively (for a Goldman offering!) at $4.75. It's trading in the premarket right about there. If you are a true believer in the
(F) story -- (the only remaining legitimate American car company, best leadership, cars people still want to buy)-- now's your chance. Lotsa stock out there, and a lot of syndicate players who will be happy to dump for a dime (or less!).
Me? Yeah, I'm buying. YMMV!
Positions: Long F
By Adam Feuerstein
05/13/09 9:14 a.m.
A few readers have asked me if hit being taken by
is an overreaction.
The blood-thinner Cangrelor was the only potential growth driver for the company. Now that it's gone, so is Medicines Co. The company will continue to sell Angiomax into the cath lab market, but the drug is going off patent and will face generic competition next year. Cleviprex, a blood pressure drug, has been a dud since launch last year and the experimental antibiotic oritavancin is a joke.
I was short MDCO in the Biotech Select model portfolio but covered awhile ago for a 50% gain. I had my doubts about Cangrelor. Damn, I covered too early.
MDCO, Adam and the Statistics of Snapbacks
By James Altucher
05/13/09 9:29 a.m.
Adam might be right on Medicines Co., but I'm going to do a short-term long here, perhaps just for an hour. Nothing goes to $0 in a straight line. This stock has had some nice insider buying, has $164 million in cash with no debt, and still has more than $400 million in revenue in "dud" drugs. The company also still has 12 other drugs in their pipeline. I'm not saying this is a great company, just a short-term buy based on the statistics of snapbacks in similar situations.
I'll try to get in below $6 after the open. The way I always played snapbacks like this is to never use more than 3% to 4% of my portfolio and to hold for no longer than one or two days. No stops, and I'll take profits if it bounces a quick 6% to 10%.
Reloading the Ultra Real Estate ProShares Trade
By Christopher Grey
05/13/09 10:07 a.m.
I am reloading my long trade in
Ultra Real Estate ProShares
at these prices. The short-term exit target is again close to $4 if we get fast move up, but I will hold longer if we get a slower and steadier advance in prices. I think downside at current prices of this security is limited unless macroeconomic news gets a lot worse.
Positions: Long URE
By Gary Morrow
05/13/09 11:45 a.m.
is adding to yesterday's powerful rally with a 3.5% gain in the early going. The stock was up over 5% yesterday with the help of a big surge in volume. Tuesday was the heaviest positive day for Pfizer since late 2005.
, regarding the stock's attractive valuation, along with speculation of a dividend hike, have sparked the two-day ramp.
March has been a very strong month for Pfizer. The stock began the month in the middle of a six-week consolidation pattern it had been in since it peaked in mid March at $15.00. Volume during this period dropped dramatically as the stock moved lower into late April. As volume picked up near April's close, Pfizer was set up for a breakout.
With the move over the past two days, the stock has now left behind a solid short-term base. The $14.50 area up to the March highs of $15.00 will now serve as the first layer of support. A light-volume pullback to this zone would be a buying opportunity. On the upside, Pfizer will run into some resistance near $16.25. This is the area of Pfizer's downward-sloping 200-day moving average, which served as a brick wall in January. The stock may test this level before pulling back.
Pfizer is not the only positive health care stock in the
at this point. There are four Dow stocks on the plus side with two hours in.
Johnson & Johnson
are the other three.
Positions: Long PFE and HD
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This article was written by a staff member of RealMoney.com.