ENCY: Incredibly Good Retracement Play

Discussion in 'Stocks' started by rmarshceint, Mar 29, 2006.

  1. Yeah this Biopharm Stock lost over half its value in one day on Monday. It seems in the Approval Letter from FDA that the Gov't Agency needed some more Data before actual Approval of its Pulmonary Hypertension Drug called Thelin.
    The FDA said there were Minor deficiences and the Drug is definitely Approvable.

    This is purely a Speculative play and is NOT based whatsoever on any CANSLIM method or Fundamentals. Actually the Fundis are negative.I just think when a Stock loses half its value in one day then all negative news has been priced in and it becomes highly probable that Upside movement is imminent.

    Needless to say this is a play on a gross imbalance of Supply and Demand and a Overeaction in the Market place !!
    It bottomed out at 4.56 or so Monday and is slowly climbing and closed at 4.96 today. Two year low is like $6.50. On Friday it was well over 9.00 !!

    Personally I think on April 1st this Stock will take off as Hedge Funds and other Instis will want to scoop shares of these grossly undervalued stock to make their Portfolios look good with the new qtr. and a clean slate.

    I am confident we will hit $7 by end of next week. Yahoo has a one year price target at over $11.00. And other analysts like Street.com have target over $14 !!

    Good luck !!!

    P.S. Keep in mind the Europen Union could very well approve this Drug, Thelin, relatively soon which would really have a major effect on upside valuation.
    And also at this Stock Price their could the possibility of a takeover by a Corporation like Amgen or DNA !!
  2. maxpi


    So there was massive selling recently but there will be massive buying soon.... interesting. The best retrace plays BTW are on issues that have been way up on way above average volume, then fall on declining volume and then... sometimes... the buyers come back for more. I am not sure I would call what you are describing as a retrace...
  3. Shhhhhh don't tell everyone!! The circumstances of the drop are overdone as well. They recieved an approvable letter, that means its pretty much a done deal barring they have the requested data. Its highly likely they already do. Do your homework.. This is not just a retracement trade. Target 20's <img src="http://www.oacimages.com/smilies/jumping0042.gif"/>