MDCO increasing volume and price push

Keep MDCO on watch or try to initiate small positions as it is potentially breaking through...to newer highs..

Volume has been well above average last two trading days (this post written on Feb 2) and price is on up swing.

Disclosure: Long

Biotech: New Positions Initiated

Dynavax (DVAX) initiated at 3.32 on Friday Jan 6th, 2012 and closed at 3.62 for small profit. But might get back in using $5 Apr or July calls options.

INCY - initiated again at 16 for long term hold after some back and forth trading between 13.80 and 15. Missed the move from high 14's to the 16 due to lack of cash flow!! arggh!

Other stocks (no positions but good hopes): VRTX.


Current holds: MDCO (worth adding more in 18.50 to 19.20 range). LONG!!!

Coin Toss Method : INCY

After careful analysis of several factors that seem to affect share price of companies traded in the stock market, we have decided to make a forecast on some companies based on hope and coin tosses:

Incyte (ticker: INCY) - upgrade - new price target : $ 24 by December 17, 2011.

Nokia ADR (ticker: NOK) - upgrade - new price target - $ 10 by January 31, 2012.

Tata Motors (ADR) (ticker: TTM) - neutral to downgrade - price target - $ 18.50 by November 16, 2011 then eventually rising to $ 26 by March 1, 2012.

Medicines Company (ticker: MDCO) - new price target - $ 24.50 by December 30, 2011

All price and time forecasts are based on a healthy expected rate of return on investments held by me. There is no guarantee these stocks will behave as predicted, but if they did, I would be very happy and somewhat profitable! This is not a recommendation to buy or sell these stocks and definitely not a recommendation to short any of these.

MDCO new position (speculative)

The Medicines Company is one stock which we had followed for long time through its ups and downs. Recently MDCO hired John Kelly (formely VP controller at Wyeth - which got acquired by Pfizer in 2009). Soon after J Kelly retired from Pfizer-Wyeth.

Interestingly enough, recently (Apr 28, 2011) John Kelly has been appointed to the Board of Directors of the Medicines Company. Could this hint toward a possible takeover being in the works? Maybe/maybe not. but then, this is why its called a speculative position.

MDCO did report good results recently (Link) where it reported 64 c eps vs an analyst estimate of 40 c/eps.

Do your own due diligence. Good luck.

Disclosure: long MDCO since 16.15/share.