Ticker Tape Digest Editor Recommends Celgene
Source: http://ceoblogger.wordpress.com/2008/08/03/ticker-tape-digest-editor-recommends-celgene/Posted on Sunday, August 3rd, 2008 | In Current Market News, Market Commentary, Stocks to Watch
Biotechnology player Celgene is a new buy from Leo Fasciocco, editor of Ticker Tape Digest, which focuses on stocks that are breaking out from technical bases:
“CELG has broken out from a 3-month flat base and has moved into position to make an all-time high. It just needs to hurdle 75.44. The stock has been one of the best performers in the medical sector having soared from 60 to 69 in the past six years. It is a market leader long-term.
“CELG markets Thalomid to treat multiple myeloma and Revlimid, a less toxic thalidomide derivative, to treat MDS and multiple myeloma. The acquisition of Pharmion gave CELG global rights to Thalomid as well as MDS drug Vidaza. CELG also has discovery capabilities in cell-signaling pathways and stem cell research.
“CELG has appreciated 18% the past 12 months compared with an 13% decline in the S&P 500 index. The stock’s recent gap higher came at the expense of a competitor Dacogen drug which disappointed in tests. Dacogen is produced by SuperGen Inc. Analysts said the results open the door for CELG’s product to gain greater market share.
“The stock’s TTD momentum indicator (top of chart) is strongly bullish.”The tape action showed big institutional buying in the stock. That is very bullish. The accumulation – distribution line has broken out nicely to the upside.
“This year, CELG’s profits are projected to increase 27% to $1.35 a share from $1.06 a year ago. The stock sells with a price-earnings ratio of 51. That would seem high, but fits with the earnings growth rate. Next year, analysts look for a 56% jump in net to $2.10 a share. There is a possibility analysts will raise their earnings forecasts after the competitor’s drug poor showing.
“Institutional sponsorship is very good. Artisan Mid Cap Fund, 4-star rated, was a recent buyer of 775,000 shares. The largest fund holder is 3-star rated BlackRock Index Equity Fund with a 7.3% stake. It was a recent purchaser of 31.6 million shares. In our view, Celegene’s breakout is impressive and we are targeting a move to 80 within the next 6 months.”
track this pick at:
http://trackthepros.com/categories.php?category_id=1379
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October 30th, 2008 at 9:54 pm
[...] way for the market of today. Before the advent of this technology, transmission of stock … Ticker Tape Digest Editor Recommends Celgene | Stock Market News … Biotechnology player Celgene is a new buy from Leo Fasciocco, editor of Ticker Tape Digest, which [...]