A Little Canadian Birdy Told me....

Discussion in 'Stocks' started by stonedinvestor, Dec 6, 2006.

  1. Hi everyone. Who likes a nice risk reward play more than the stonedinvestor? In another thread I mentioned to Restan to keep an eye on Labopharm
    (DDSS). Careful volume analysis by yours truly indicates subtle accumulation.

    Normal Nov. volume 161,000 to 232,000 shares /
    In it's last dip to a 52 week low it was on EXTREMELY low volume were talking a punk 47,000 shares! Sure there was no buyers but the selling had apparently dried up. Then a funny thing started to happen as the stock picked itself up from $4.82 it began to see some HEALTHY volume. First 245,000 then a nice 702,000 share day which took place with the stock at $5.70 about where it is today...

    Now about that Canadian Birdy, I believe I know who some of the bigger buyers were and their premise is based on some info that the Co. resubmitted their pain killer to the FDA TWO weeks ago. This is not in the general press. Normal turnaround would be within a month, closer to three weeks. This Product has already been approved but ran into obstacles & requests for further info etc.. usual Bio BS. There are three possible outcomes the best being an OK from the FDA you got the problems fixed begin selling! That would result I believe in an instant rise to $9 / a more likely scenario is the class 2 scenario in which they get the ok to go ahead in 3Q 07' this I believe will get the stock to above $7. The third result is the outright turn down- problems not fixed, stock retreats back to it's low area around $5. With a current price of around $5.80 do the risk reward analysis yourself... What's nice is this is a quick play. You will have your answer by the New Year!