As Market Drops, It's Time to Buy

As the market dropped nearly 200 points on Monday, the time was ripe for investors to eyeball their 'Watch Lists' for bargains.

Personally, I suggest accumulating shares of any stock that has dropped to your 'buy price', but I'd also keep a little bit of cash on the sidelines just in case the market slides for a little while - as many have predicted - and the DOW dips below 9,000 again. I'm not in the boat with those that predict a drop to the March lows, nor do I believe that the market will rush towards DOW 10,000, but a drop to the 8,500 area is likely, in my opinion.

If that's the case then there's sure to be bargains out there and the small investor will have a good chance to average down on their positions - or average up for lower prices, as would be the case for those that accumulated CSUH.OB, AGEN and ONTY (for example) while they traded for dirt cheap earlier this year.

Speaking of AGEN and ONTY, both were very attractive buys on Monday while trading for below $2 and below $5, respectively, and in both cases I think that investors will be hugely rewarded in the mid to long term. Keep in mind, there is still huge risk involved with both investments, but the survivability data that Oncophage and Stimuvax are racking up is comparable, at least, to that of Provenge and both stocks could turn into another Dendreon (DNDN) story. Investors who were waiting for a good entry point for these stocks got a good deal on Monday - and if they drop even lower, then I'd call it a great entry point.

As for Dendreon, the stock looked like a great buy as it dropped to just over $21 on Monday morning, before recovering to over $22 in afternoon trading. News on an FDA decision regarding Provenge approval is drawing nearer and that news, combined with any partnership news, could send DNDN soaring once again. Monday morning's trading offered another good opportunity for investors to start a position in DNDN, but for those looking for a less-risky alternative that holds just as much potential, I suggest a look at AGEN and ONTY, as I describe here.

Shares of Vanda Pharmaceuticals (VNDA) also took a huge dip to the mid $12 range during early trading on Monday before recovering to over $13 later in the day. Regardless of the fairly significant dip that appeared as a good entry point into the stock, I still like TTNP.PK as a better buy, although that stock traded up for most of the day.

CSUH.OB looks to have entered the 'buy territory' for some investors as volume and buying picked up the closer the stock dropped to the mid forty cent level on Monday. Those who may have been drawn to the stock by recent press releases, such as the sponsorship of the Florida Panthers, were offered a decent price to buy shares of the company that produces the world's first calorie burning beverage. Celsius, in my opinion, is a marketing campaign away from mainstream, and a buy in the forty cent range could soon look like a bargain.

Shares of Marvel Entertainment (MVL) also dropped nearly a dollar on the day, and although I love the future of this company - especially since they now reap much of the rewards for their movies - but I'll hold off on the buy until/if the stock drops to below $35. I still consider this a great pick for the IRA or for the kids' portfolio of the future. It's definitely a tempting buy with the fairly big drop on Monday.

As much as I'd love to add more shares of BioElectronics (BIEL.PK) to my portfolio for under five cents, I think I'll have to settle for adding at between seven and eight cents. In my opinion, this company and its products have the potential to 'hit it big', especially with the recent heat coming down on Acetaminophen, Ibuprofen and narcotic pain medications of late. If ActiPatch and associated products take off on the global market as they could, then those who bought for below ten cents will be laughing all the way to a beach house in a few years from now, in my opinion.

Also of note, shares of Insmed (INSM) dipped below ninety cents after the stock had successfully held that level for some time. Speculation on the future of the IPLEX program has been rampant lately, but the company's stock may have just entered buy territory again. I've sold 2/3 of my position while it was at a dollar, but if the stock drops lower than where it is now, I may buy those shares back. In my opinion, we haven't seen the end of Insmed - and especially not of IPLEX.

A ho-hum trading day was great for some accumulation, let's see what today brings; if the market continues to drop - then the buying opportunities open up.

Disclosure: VFC is long all stocks mentioned, aside from DNDN and MVL of which I have no positions.

Comments

[TONY_NFNY:]

Look at the charts and do some research for BIEL. The Last 510k filing for the Allay patch doubled the PPS from .0046 to .01. There are two additional filing scheduled for this Month and FDA action scheduled for the Allay Patch filed on June 15th.
There is a nice stair step formation here and a pattern of PPS moving sideways before FDA Filings. Normally sideways movement (consolidation) is followed by a breakout continuing in the same direction before the consolidation began. This looks really good in my opinion.

Aug 18 09:08 AM

[VFC's Stock...:]

Tony,

Thanks for the info. Good stuff and appreciate the insight.

VFC

Aug 18 09:38 AM

[TONY_NFNY:]

What may be holding BIEL up from continuing it's increase in PPS may be the PK. Caveat Emptor label. BIEL has'nt released audited financials on a timely basis, but from what management and IR man Joe Noel have said, BIEL management is in the process of addressing the Caveat Emptor and plan to have it removed soon.

Aug 18 10:28 AM

[User 468687:]

With regards to BIEL (or any other stock for that matter), do you pay attention or believe things said on the yahoo finance message boards or is it just a forum for ridiculous pumping and bashing?

Aug 18 08:23 PM

[Hephasteus:]

So you're saying drugs and childish drama are going to be big hits in the future?

Aug 19 05:45 AM

[Michael Clark:]

Haven't drugs and childish drama been big hits for some time now? I was hoping things were going to change.


On Aug 19 05:45 AM Hephasteus wrote:

> So you're saying drugs and childish drama are going to be big hits
> in the future?

Aug 19 06:40 AM

[Michael Clark:]

If the market drops in a Bull Market, then it's time to buy. If the market drops in a Bear Market, then it's time to short stock. Is this a Bull Market or a Bear Market. We'll know more if a couple of weeks.

Aug 19 06:42 AM

[ebworthen:]

What's your time frame?

I wouldn't be buying anything here that you aren't going to sell quickly on an up day.

September and October doth approach.

A much bigger correction than Monday's is coming.

The buying on Tuesday was speculative, and won't have long term legs.

If you are pumping and dumping, fine. But if you want to buy and hold, wait until we go below the March lows this Fall/Winter.

Aug 19 07:02 AM

[VFC's Stock...:]

Ebworthen,

I wouldn't rule out another drop - but I'd be hugely surprised if we went back to the March lows, especially with the SEC now acting like they are going to keep an eye on naked shorting.

If buying on the dips is someone's strategy, then that strategy shouldn't change. If the market drops substantially ( as it did in March) then there's just a bigger dip to enjoy buying into.

As for BIEL, TTNP, VNDA, DNDN, CSUH - all listed above, pending news could significantly boost the future value of all companies and will eventually reflect that in stock price - bull or bear market.

Just out of curiousity, what are your markers to suggest we drop below DOW 6500 this fall?

VFC

Aug 19 09:26 AM

[JanBCarter:]

I'm still mistyfied by INSM at under $1 with cash of $1 more or less on hand! It's like the market sees absolutely no value in future IPLEX developments like MMD and Lou Gehrig's disease. What's your input? Think they're going forward as an independent company, or are we hanging in there looking for a sale shortly? Thanks...appreciate your input...JBC

Aug 21 11:33 AM

[DuckThis:]

Allright today was brutal for biel. do you or anyone have a take on this with facts to backup?

Aug 25 05:01 PM

[Robert0713:]

Facts are hard to come by with BIEL. The device is intriguing. The company has been around for years. Sued a few times. I can't tell right now whether they're serious about making and shipping product, or recycling the stock. Roll of the dice.


On Aug 25 05:01 PM DuckThis wrote:

> Allright today was brutal for biel. do you or anyone have a take
> on this with facts to backup?

Aug 25 10:39 PM