Wednesday, March 21, 2012

Thursday, March 8, 2012

Food, Gas and other stock talk



Market Talk:

The market is easily spooked. The market has support, legs. The market this and the market that. The market is smart and looks ahead, it's anticipatory. The market is made up of a sea of fools all chasing each other. There's a few sayings, I've heard or just made up..You pick it. The best saying that has stood the test of time, buy low/ sell high.

Stock Talk:

Today, I want to cover two themes that I have been pondering.

Food and Gas.

I am watching Tyson Foods (TSN) in the food sector and Western Refinery (WNR). Not buying TSN, and holding WNR. More later... I think WNR is in the sweet spot for awhile. more sometime later...

In other stocks, I am watching ACHN. It has a similar air about it that VRUS and INHX (in the Hep C treatment space) had about them before they got suddenly bought out at huge premiums. These two had a class of drugs in clinical testing stage known as "nucs". But yesterday, Bloomberg reported again that Gilead's drug is showing relapses in 8 out of 9 patients where they previously touted a cure. This brings the nuc class into serious question in my view.

Enter ACHN -1625 a small molecule Protease Inhibitor (PI) that may represent a lasting cure for Hep C by Achillion Phamaceuticals (ACHN). ACHN is trading much like INHX did. After hitting the 12's on the excitement, INHX backed off into the 10's and 9's as shorts piled on. Then suddenly over a weekend, INHX got bought out in the 20's on a Saturday.

I was watching INHX to pull the trigger and buy some that Friday but got busy and said I'd wait till Monday.

With the latest news about the nuc class that Gilead paid about $11 BILLION for and the relapses .... I am growing more convinced that large Pharma is taking a keen look at ACHN. Looking at the share structure, something on the order of $ 35 a share may be what it takes if one of the large phamaceuticals acts fast. I am sticking to my guns for awhile to see what happens on ACHN. If large pharma does not step in there are a lot of newly rich investors from  VRUS and INHX that , I believe, want to do it again and ACHN is a prime candidate for investors to be wanting in.

Well, pick your saying today, tomorrow it will change. The moon was full last night did you howl at it or look up and talk to the man in the moon and the one above us all and say thank you for life. Speaking of that, well I'll come back to that someday.
__
ALL in my humble opinion, scroll down and read more..

This site does NOT make Buy / Sell recommendations.
___

counter