You mentioned PFE, too - another steal. I'm cautious here, at least for any long term play, because beneath the surface there is a raft of litigation on lipitor because of rhabdomyosis (muscle destruction). ( All the other statins that are lipophilic have potentially same problem.) The one that is different is Pravachol, which is hydrophilic, and for that reason, apparently safer. Is lipitor potentially another VIOX? Pfizer has so far kept this swept under the rug, but still the possibility that it might surface in public scares me. Pfizer also has Celebrex with same problems as VIOX. But Pfizer seems to be very adept at keeping the "news" under wraps. Bottom line, Pfizer may be headed for a double whammy: About the time their lipitor patent runs out they get hit with thousands of lawsuits. I think there are safer drug plays.
One other thing in Cholestech's favor, I think Trend, is this whole trans fat business and how that highlights the war on cholesterol... people who don't usually test themselves might take a look considering how easy and cost efficient the test is. The more you look the more you find and I think in the long run your local Dr would love this test because it allows for follow up visits and treatment with meds... all good for the pocketbook... > Good Luck!
Holy Grail will those jan calls get you to the next earnings report? My sense is management is no dummy here- there are a HUGE amount of people who believe in this company, there are LARGE funds and retirement $ that are camped out at $27 are on their buys... there's just every reason to get this stock back on it's feet. Their last report had so many damn charges and special items it was almost impossible to decipher-- I would bet they clear the decks, hold off on some special charges, and the result would be quite a large earnings beat this next time around. I think you would want to be long through the next report and coast out of ST position at that time and hold your initial position for 2 years.
No, my calls won't be good as they report on 2/7/07. I'm just playing the calls strictly for the bounce it may get from the hearing tomorrow and Friday. S&P just lowered the credit rating on the stock today to just two notches above the "junk" so I don't think I want to be in this one long term.
This is a swing play for me only. This stock has hammered me three times this year. If it stays within trend I will hold it longer, but I'm not counting on it.
Stoned Investor : Hey dude did you see Genomic's (GHDX) 14% spike up today on favorable news with United Health? OMG man you called it. But I have to say I was sweating bullets and had to violate one of my own cardinal rules about averaging down when it tanked down back around Christmas time. Now my dilemma is if I should bail out here, take half off the table or let it run. The news looks very good but I don't know this stock well and if the traders are going to dump it now. Your thoughts? TS
Trend I don't like to average down either it's a hold over thing from when brokers always told me to do it. It's more a general call here but my sense is last week bio in general made an attempted spike, signaling that institutions were looking for plays in the sector. When you factor in Genomics potential for getting more and more good newsflow from HMO's and the further application of their technology into other cancers it's a hold in my book.~ stoney