Three Cancer Drug Makers with Catalysts Coming This Fall Print E-mail
Monday, 24 August 2009 07:29

The Lucky 13 Buys portfolio was introduced on July 7, 2009. In less than two months, this portfolio of carefully selected companies has gained nearly 30%.

 

Three of the companies have achieved gains of greater than 53%. While almost ½ are up over 38%, more than ¾ of the Lucky 13 have advanced more than 15%.Since the Lucky 13 Buys debuted, several leaders have emerged and since pulled back from prior high points. To view past results, click on the companies listed below.

 

 

LUCKY 13 BUYS

Symbol Last Gain/Loss (%)
FSYS 32.20 72.93%
ONTY 5.32 65.74%
TOMO 4.05 53.41%
SUPG 2.89 42.36%
ARIA 2.12 40.40%
SWC 7.01 38.26%
CLNE 10.62 23.34%
ONB 11.15 19.00%
GTXI 9.61 18.50%
SPPI 6.49 15.28%
PRXL 12.98 2.77%
OSIR 12.25 (-2.23%)
UNG 11.35 (-6.81%)
Portfolio Gain +29.48%

Data: Closing prices from July 7 to August 21, 2009.

 

FUEL SYSTEM SOLUTIONS

Fuel System Solutions (FSYS), the newest leader of the Lucky 13, has gained nearly 73% in the past seven weeks. On Thursday, August 6, FSYS reported solid Q2 2009 earnings which beat analysts’ estimates. Eight days later, on August 14, Jim Cramer, the host of CNBC’s Mad Money, provided a favorable outlook on the company.

FSYS is one of three plays, within the Lucky 13, on T. Boone Pickens’ Plan. Under the Pickens’ Plan, Boone has proposed a solution that could enable the US to reduce its dependence on foreign oil by shifting commercial vehicles from diesel and gasoline to a much cleaner and cheaper (for now) natural gas – compressed (CNG) or Liquid (LNG). According to Boone, even former US Vice-President Al Gore likes the idea! It is worth noting a bill could be passed as early as this year calling for half of the federal government’s fleet to be switched from petroleum-based fuels over to natural gas. If so, this would likely spell a huge win for FSYS.

Interested investors ought to keep an eye on FSYS.

 

OTHER RECENT CALLS

  • On August 17, 2009, I alerted investors at my SeekingAlpha blog that SPPI Is a Buy at $6.12 when shares retested their 50-day MA. In four short days, SPPI advanced +6.05% to close at $6.49 on Friday, August 21.

 

  • On August 14, 2009, I pointed out that ARIA had Significant Catalysts Approaching. Since then, ARIA has jumped +17.78%. At the end of last week’s trading, shares of the stock closed at $2.12.

 

  • On July 14, 2009, I wrote that SPPI was Oversold and Undervalued at $4.98. Since that time, shares have advanced +30.32%.

GOING FOWARD

In the near-term, the folks on Wall Street are expecting that US equities will likely pullback. After major indices posted new highs YTD, investors should expect stocks to retreat some from recent highs points. This means, investors need to put on their stock picker hats this fall.Throughout 2009, small cap drug makers with late-stage products have been a good bet. Over the coming weeks and months, this trend is likely to continue. From my view, the best plays are late-stage drug makers with pending catalysts. Listed below are my top three fall ‘09 picks arranged by date of event.

Spectrum Pharmaceuticals (SPPI)

  • On or before September 7: Zevalin®
  • October 8: Fusilev®
  • For more details, see this August 20 article on SPPI.

 

Ariad Pharmaceuticals (ARIA)

  • On or before September 30: ridaforolimus
  • For more details, see this August 14 article on ARIA.

 

GTX Inc. (GTXI)

  • October 30: Acapodene®
  • Stay tuned. Details: TBA

 

Disclosure: Long ARIA and SPPI.

 

ADDENDUM

Regarding Criticism

Penn Bioinvestor, a contributor at SeekingAlpha, wrote this under my August 20 article on SPPI:

“[C]an you stop pump this stupid SPPI? Simply too much for serious readers in seekingalfa trying to seek some real objective research on stocks.”

I choose to allow the marketplace of free people to be the judge. I NEVER claimed to be an objective party hence the disclosure. I am an investor first and writer last. I am NOT a reporter. However, I HONESTLY report my findings and my opinions as well as disclose my positions when and where it is required. Regarding my consistent and thorough coverage of specific companies, my aim is to follow through. I follow the rules that I am required to follow. I present the case for a given company and allow investors to decide. It is important to note that the law does not bar such speech. So, what gives?

The solution, here, is simple. If you strongly disagree with me, then I encourage you to state you position in an article. In the end, investors will vote and decide who is more helpful to them. Most important to investors are results. Results speak for themselves.

After all said, I am not trying to start a war of words with Penn Bioinvestor. I do not know who he or she is, but I’m sure he or she is a fine person.

Whether the author is Justin M. Hall, Mike Harvilla, or M.E. Garza, we each have our own unique style and differing opinions. We have the freedom to express those opinions. From time to time, folks will disagree. Where one disagrees, I encourage them to write an article and provide their opinion. With that said, please do not imply that I am or may be committing investment fraud – the tactic used in Penn Bioinvestor’s statement above. Such claims are totally false, misleading and could cause harm to my character and good name. Under the law, such statements might qualify as defamation. At the end of the day, I am NOT interested in a war of words with Penn Bioinvestor. I will, however, welcome his or her opposing view.

 




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