• Increase font size
  • Default font size
  • Decrease font size

As markets struggle, keen BioMed investors will keep making money

Print E-mail
By M.E.Garza   
Thursday, 09 July 2009 06:11
The market continues to slide on nerves and concerns about all kinds of developments that- for the most part- seem to indicate that advancing past this recession is a lot more difficult than most- including the U.S. government- expected.  That's the bad news and there appears to be plenty more coming.


The good news is that while most of the market is flat, there is still lots of volatility and action to be had in the healthcare sector.  These stocks move! Most other sectors are stagnant. Watching the movement in their stock prices is about as exciting as watching paint dry.

The biomedical sector shows great resolve as the rest of the market falls apart and as the big pharmaceutical giants' pipelines dry up, that only makes things for the small caps and upstarts far more intriguing. There will be many fortunes made by investors and traders who recognize this and can act both astutely and sensibly.

As I said yesterday, the biggest trades in the biotech sector have happened for us after digging for good intelligence. That means having up to date, reliable information about not only good up-and-coming companies, but also arming up with knowledge of important catalyst events- like upcoming FDA decisions and approvals- which undoubtedly have an impact on the prices of bio company shares. Look at the big boys here for guidance. Institutional investors pay big bucks (tens of thousands of dollars per year) for information like that. Until now, the vast majority of institutional investors had no way to access that information. As a news and information portal, we're actively attempting to change that. Soon, you'll see even more tools and information that will help lead the way.

Things may be about to get even more interesting for the over all market, but if you're going to actively trade  and invest in biotech stocks during this uncertain time you need to be smart and in order to be truly smart, you first need to be informed.

Let's talk about  a couple of small-cap companies I continue to keep an eye on based on the recent trading volume and chatter.

First, Spectrum Pharmaceuticals, Inc. (NASDAQ:SPPI).  Even though the company was asked to provide more information to the FDA regarding their application for Zevalin as an initial treatment for non-Hodgkin's lymphoma, credible industry observers believe that the company should be feeling confident that the data it will submit will satisfy the  the Complete Response letter's requirements. In addition, they feel that after seeing this type of scenario play out many times before, SPPI should expect a favorable regulatory decision. The drug is already approved as a treatment for non-Hodgkin's lymphoma patients who have relapsed. An approval would mean tremendous new revenue opportunities. In addition, the company has a second pending decision for approval by the FDA this October and that is very rare.

Second, penny play BioElectronics Corporation (OTC:BIEL), rose a couple of cents since I told you about it. Look for it to continue to attract attention. The technology they use actually has it's roots in the work of Nikola Tesla, who is best known for many revolutionary contributions in the field of electricty and magnetism.  It not only relieves pain, it also appears to show some healing propeties at the cellular level. Sounds like sci-fi, but studies apparently back up the claims. I'm in the process of tracking down a company spokesman and will try to dig for more information about the technology and this small company's future plans.  The headline grabbing concerns posed by the FDA about possible restrictions of common painkillers and theliver damage they cause, this small bio play could continue upwards. Look for them to continue to put out their own good news as well.

Here's a look at the last session's movers and shakers:

Gainers (% price change) Last Trade Change Mkt Cap
Amgen, Inc. AMGN 59.50 +7.27 (13.92%) 60.24B
Cambrex Corporation CBM 4.18 +0.29 (7.46%) 122.15M
Tenet Healthcare Corp. THC 3.05 +0.19 (6.64%) 1.46B
Capital Senior Living CSU 4.32 +0.26 (6.40%) 116.00M
Transcend Services, Inc. TRCR 16.91 +0.87 (5.42%) 143.42M
Losers (% price change)
Arena Pharmaceuticals ARNA 3.96 -0.71 (-15.20%) 316.92M
Orexigen Therapeutics OREX 5.34 -0.69 (-11.44%) 185.09M
Hemispherx BioPharma, Inc HEB 2.00 -0.23 (-10.31%) 170.25M
Jazz Pharmaceuticals, Inc JAZZ 3.78 -0.43 (-10.21%) 109.34M
3SBio Inc. (ADR) SSRX 7.18 -0.81 (-10.14%) 154.46M
Most Actives (dollar volume)
Amgen, Inc. AMGN 59.50 +7.27 (13.92%) 60.24B
Johnson & Johnson JNJ 57.08 +0.85 (1.51%) 157.29B
Pfizer Inc. PFE 14.61 +0.02 (0.14%) 98.59B
Merck & Co., Inc. MRK 28.04 +0.42 (1.52%) 59.13B
Abbott Laboratories ABT 46.31 +0.97 (2.14%) 71.57B


Disclosure: No positions




BiomedReports is not paid or compensated to report news and developments about publicly traded companies. Full disclosure can be read in the About Us Section

Add this page to your favorite Social Bookmarking websites
Digg! Reddit! Del.icio.us! Mixx! Google! Live! Facebook! Technorati! StumbleUpon! MySpace! Yahoo!

blog comments powered by Disqus
 
about 2 hours ago Medgenics ($MDGN) up 10% on Monday! We first told you about the firm last Friday: http://t.co/aD50CMSH
about 2 hours ago Thinly traded BioLineRx shares move on hepatitis C deal: The shares of thinly traded BioLineRx (NASDAQ:BLRX) soa... http://t.co/ugbuZgNN
about 7 hours ago Orexigen® Announces Agreement From the FDA on a Special Protocol Assessment; Acorda Announces Launch of Generic ... http://t.co/vSt6VrLP
about 12 hours ago $CVM up 17% and technically looks like it may head higher.
about 17 hours ago $ANAC drops after GlaxoSmithKline (GSK) pauses enrollment for its clinical trials of its urinary tract infection drug. http://t.co/yUUSzkUr
about 18 hours ago Catalysts on tap for Corcept: Corcept Therapeutics (NASDAQ:CORT) is a drug discovery company focused on the deve... http://t.co/jd3C1ddH
about 19 hours ago Commented on: "Will Celsion's Upcoming Catalysts Help The Price Break-Out Stick?" http://t.co/dJ0reUFR $BSX $PHG $MDSO $CLSN
about 19 hours ago Monday morning watch -- European Leaders Maintain Pressure on Greece to Complete Terms for Bailout - http://t.co/0wipY6QB via @BloombergNews

navigation

Free Phone Trade Alerts