Speculators continue to bring volume into healthcare stocks Print E-mail
By Staff and Wire Reports   
Thursday, 09 February 2012 13:20
FDA CalendarWe continue to see volume coming into the healthcare sector and at the top of the list for today was Accuray Incorporated (NASDAQ:ARAY) which continued to trade up $7.25+0.96 (15.26%) after announcing financial results for the second quarter of fiscal 2012 that ended December 31, 2011.

Accuray included solid revenue, positive service margins and effective management of operating expenses in their report to the market and Euan S. Thomson, Ph.D., president and chief executive officer of Accuray says his firm continues to capture competitive vault space, and as their installed base grows, so does their recurring service revenue. "We remain ahead of plan with our TomoTherapy System reliability improvements and have made significant progress on improving service gross margins," said Thomson. "Overall, we're pleased to report that we remain on track to return to profitability on a non-GAAP basis as scheduled by the end of fiscal year 2013.".

Shares of Medgenics (AMEX:MDGN) traded up again, this time hitting an intra-day high of $6.76. The stock is still up significantly at the end of the day despite giving some of those gains back. We told our readers about the company several days ago and the stock has seen significant volume and buying interest since. As the article pointed out, investment bankers at Nomura call this one of the top 10 biotech companies to watch over the next 5 years. We'll keep an eye on it, and remind everyone that you need to set tight stops in-case a secondary follows at any point.  Technicals still look okay here, with an overall consensus of technical indicators lookin 65.71% Bullish, but I am concerned about the candle formation that we're being left with at the end of the day.

Some investors took profits off the table at Inergetics (OTC:NRTI), but they may have done so far too soon. There is still more upside at this nutitional sports drink penny play and we think given the amount of interest and news flow we've seen from the company during the last few days, things are finally starting to heat up.

As you may recall, we have been following this firm and their unique technology for some time and our investment thesis has always been focused on the Company’s proprietary nutritional products which help athletes and others bounce back from work-outs very quickly.  We believe that they are a best of breed product and that opportunities exist for them to become competitiors in the nutritional supplement space.  Inergetics displaced CytoSport’s Muscle Milk from supplying West Point las summer. A transaction  that coincides with The Food and Drug Administration issuing a warning letter to Muscle Milk maker Cytosport saying the dominant protein drink brand’s labels could be misleading to consumers.  Now, the firm has issued two press releases which could be setting the table for some real revenue flow and more endorsement deals.

First, they finally announced that their long awaited Ready To Drink product is ready and today they let the market know that they will be generating some revenue through their private label channel by entering into a supply agreement with Muscle Maker Grill Restaurants. This is one of the fastest growing health food franchise operations in the United States, has 53 restaurants in six States and NRTI will power the chain's Muscle Maker Grill Ultra Pro energizer protein shakes. Sports athletes and trainers absolutely love this stuff and I'd keep my eye them as it seems like they're finally getting their head above some of the financings they did. That the stock has been climbing is very encouranging. I just thought today's news was much more significant than most realize. Note the golden cross (50 day moving average crossing over the 200 day moving average) that just formed on the chart. That is usually a very bullish sign and one we often look for when running screens.

Here are the rest of today's top movers in Healthcare:

Gainers (% price change) Last Trade Change Mkt Cap
Accuray Incorporated ARAY 7.23 +0.94 (14.94%) 513.72M
Thoratec Corporation THOR 34.41 +3.60 (11.68%) 2.06B
Pharmacyclics, Inc. PCYC 19.54 +1.55 (8.62%) 1.34B
Santarus, Inc. SNTS 4.96 +0.25 (5.31%) 301.92M
Hanger Orthopedic Group HGR 22.09 +1.03 (4.89%) 743.50M
Losers (% price change)  
Array BioPharma Inc. ARRY 2.60 -0.59 (-18.50%) 160.04M
Osiris Therapeutics, Inc. OSIR 5.09 -0.81 (-13.73%) 167.09M
Neurocrine Biosciences NBIX 8.56 -0.81 (-8.64%) 473.00M
Exelixis, Inc. EXEL 5.66 -0.48 (-7.82%) 734.02M
Sangamo Biosciences, Inc. SGMO 4.41 -0.37 (-7.74%) 231.40M
Most Actives (dollar volume)  
Johnson & Johnson JNJ 64.83 -0.41 (-0.63%) 177.04B
Amgen, Inc. AMGN 67.03 -1.03 (-1.51%) 53.36B
Pfizer Inc. PFE 21.18 +0.17 (0.81%) 162.81B
Gilead Sciences, Inc. GILD 53.73 -0.54 (-1.00%) 40.46B
Celgene Corporation CELG 72.15 -0.71 (-0.97%) 31.53B

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