Originally posted at The New VFC's Stock House on Tuesday, November 30th.
ACTC: Shares of Advanced Cell Technologies (ACT) continued their impressive run on Monday, the first trading day after the Thanksgiving holiday weekend. Volume was again a factor as the stock rose closer to the ten cent mark, just a week after it was announced that the FDA had given the green light for ACT to initiate a trial measuring the safety and effectiveness of its embryonic stem cell treatment for severe vision loss.
As noted earlier, it is only the second trial of its type to be given the go-ahead by the FDA. In the weeklong timeframe since the announcement shares of ACTC have realized significant gains, nearly doubling in price.
The widespread syndicated release of the trial news, instant boost in trading volume, impressive short term gains and coverage by large media outlets all undoubtedly contributed to the recent run in price and has drawn interest to the stock that hasn't been seen in quite some time.
For a small player like Advanced Cell Tech, big news and big exposure puts the company on the map. The long term future of ACT has never looked so promising, as I mentioned last week, but it's also important to receognize the short term possibilities, which include possible dilutive financing or a retracement in price of sorts as traders and profit takers bail just before the holidays after having banked some spending money.
It's important to emphasize this point because it's always wise for long term - as well as short term - traders and investors to take some money off the table into a big run when they can - it's always a good feeling to bank some shorter term gains even in a longer term investment, and it leaves the possibilities open to buy back in for a lower price if a pullback materializes.
However, that's just my opinion and each investor should base his or her trades on their own DD and comfort level for dabbling in speculative stocks.
The pipeline is still in the earlier stages of development, but ACT could be showing up on the radars of potential acquiring companies or big-monied partners with a pipeline of stem-cell technologies and treatments.
Speculation to that effect could add fuel to the short term fire, and many investors who loaded or re-loaded in the nickel range won't complain.
Congrats to those who have boosted the yuletide wallets with ACTC, but don't forget about those who may benefit most from the upcoming trial - the ones suffering from severe vision loss who may have a new stem cell therapy on the horizon.
Disclosure: Long ACTC.
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AMRN: Amarin is another rising star that posted significant gains after releasing positive news, rising by over two dollars during Monday's trading on volume over twenty times the normal average.
The run on massive volume was ignited by an early morning announcement highlighting the positive results of the Phase 3 MARINE trial for AMR-101, a treatment for high triglycerides. Fueling the rise in price, in addition to AMR-101 potentially entering a billion dollar market, is specuation that Amarin has become an overnight acquisition target, or at the least, an attractive marketing partner.
The increased attention and huge potential for both the short and long term futures of this company make AMRN an intriguing stock pick right now, although I'd be more in favor of waiting for a pullback in price before initiating a position - chasing stocks doesn't pay off near as much as being in before the run starts.
Keep it on the radar and expect volatility for the near term.
Disclosure: No position.
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KERX: Keryx biopharmaceuticals is a company that has been highlighted as a nice long term pick (sometimes a good short term one as well) at VFC's Stock House since the stock traded for around a dollar, and the good news continues to flow as an early Tuesday press release announced positive results from a Phase III trial for Zerenex in the treatment of hyperphosphatemia in dialysis patients.
Keryx also has perifosine in late stage trials as a potential oral treatment for cancer.
The trial results are set to be released at a yet-to-be-named upcoming medical conference and a conference call is scheduled for early Tuesday morning to discuss the event.
KERX continues to be a solid pick, and the long term future of the company is starting to look more like a mid term future.
I always prefer KERX on the pullbacks, although it's been a while since we've seen a dip into the threes.
Disclosure: Long KERX.
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BIEL: BioElectronics Corp offered investors an update on the company website last week that was an essential re-hash of ongoing items.
The wait for clearance from the FDA to sell the company's product over the counter in the United States continues, while international growth is forcast for the near term future.
Of note, the update did announce that the products would be receiving some exposure in North America, while appearing on such television shows as the 'Dr. Phil' spinoof 'The Doctors', while also receiving a positive review on 'City Line', a popular news and talk program in Canada.
The company finally acknowledged the news of Joe Noel's YesDTC company being dropped from Japanese distributorship, and in not so many words, BioElectronics' stand point is that Joe essentially didn't have a clue how to get the job done in Japan.
It's a wonder why the company ever did business with Noel, as it could be seen - in retrospect - as one of the worst moves BioElectronics ever made.
On the other hand, disolving that relationship may have been one of the best as it makes BioElectronics look more like a credible company.
Most investors don't see BIEL as a viable investment without US over the counter clearance, even with international sales forcast to rise, and the long wait for the FDA has, without a doubt, played as a heavy weight on the potential of the share price.
Those with a long term outlook for success will take advantage of the dropping BIEL share price, but the short term could also prove to be beneficial if the right news is released.
It should be assumed, however, that - because investors are awaiting news on the US front - additional downside exists with each day that passes without word from the FDA.
Don't you love it when a government agency has a small player by the cajones?
Disclosure: Long BIEL.
