DSCO announced that it will not have to do new clinical trials for Surfaxin and that much of the "aprovable" conditions have the potential to be resolved with the FDA with a new review possible in 60 days or less rather than the standard six months. As a result DSCO shot up from 1.45 to 1.90 today. The risk/reward here was good (see last post) and the result was a better than 25% increase in one day in my position. If I had a bigger position I would have sold some for profit here and let the rest run... instead with the upcoming news to be released by the company and the potential for a relatively quick new review, combined with the still low valuation, I have decided to hold... though I will watch it closely and take profits if deemed appropriate.
SDTH reports on the 7th and ran up nicely today. Part of this was anticipated short covering. However, this company is solid though a bit raw when it comes to the conference calls. I emailed them about this and they responded the same day. They will have a new translator at this CC and are seeking out an English speaking finance person... also their NPCC capacity will ramp up over time next year and will be almost 50% higher by the early part of 09 than it is now... and the only limiting factor here is not demand but ability to produce!
I doubled my position in the company yesterday at 7.59. In the past this company gets short sold after the CC then shoots up later but with a new translator this may not happen. This company should at least meet and probably beat earnings estimates this quarter... however their real growth lies in coming quarters as they ramp up their new facility...
SIGM
I do not have a position but have been watching them closely and mentioned numerous times on here that they are way way undervalued. I was doing my DD on them for a position. I was not in a rush because they lacked a catalyst and were being shorted but the catalyst came today when Bill Gates announced that IPTV is the future...
Sometimes when excellent companies go on deep discount you just have to make the time to do the research and look at getting in with a small position. SIGM, even in this market, was beaten up too much and is still cheap...but do your DD on this. On a significant pullback I would look for a small long position...
DRYS and EXM have done well as a sector; DRYS is hitting an RSI of 70... if it starts to reverse it may give back short term. I like EXM and even more NM as long term plays as well.
I realize that the preceding needs to be put in context...
As I write this please remember that I consider almost all positions, long and short, to be trades in this market. Long means never too much and always be wary of conditions that can change on a dime. The way I feel about this market was exactly expressed in this previous post.
This blog is for informational purposes only. It does not give investment advice.
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