Which biotech is on your buy or sell radar? I suggest you take a hard, long-look at the following stocks:
Recently, from 2 May 2011 BioSante Pharmaceuticals (BPAX) opened at $2.30/share to close at $2.91/share on 27 May 2011. Likewise, from 5 May 2011 SuperGen (SUPG) opened at $2.51/share to close at $3.26/share on 27 May 2011. How far either stock could run, I like both companies as a long-term hold. BioSante's LibiGel could be a ticket to triple digit gains and SuperGen continues to sit on a boatload of cash while executing a merger with Astex (Click here to read my review). The best bet here may be to look for a dip or a retrace to snatch up some shares. However, in my estimation both companies will go much higher before 2011 ends.
Meanwhile, I've got my eye on Acadia Pharmaceuticals (ACAD) for technical analysis reasons. In late April, Zacks' analyst Jason Napodano wrote an excellent review (Click here). Why I alert readers to Acadia is because of its recent retrace. Whether it will dip further I don't know, but longs who buy in increments may want to consider entering Acadia very soon. The cash positioned, low debt company, with good collaborations could turn out to be a big long-term winner -- that is, if pimavanserin achieves primary endpoint efficacy in the current phase 3 clinical trial.
For Rexahn Pharmaceuticals (RNN) fans who suffered through corporate financing dilution and other angst, the share price has quietly moved from a 28 March 2011 close low of $1.07/share to close at $1.27/share on 27 May 2011. As they say, it pays to buy on the dip, but I would argue that Rexahn is just regaining its legs. There is a lot of room here for this stock to move up if management gets its act together and the market brings the bulls to Rexahn.
This brings me to AEterna Zentaris (AEZS). Given I rank it as my #3 biotech stock pick for 2011, I see double digit upside coming in the near-term, but mainly for technical analysis reasons. Narrowing Bollinger bands, MACD, and the general lower bottom upward trend suggests incremental buying on any dip is an excellent long-term strategy. AEterna is the kind of company that for the buyer with a long-term horizon could easily see triple digit gains or meteoric short term pops.
Finally, there's Antares Pharma (AIS). Over the last year the company's share price is relatively flat. Yet this zero debt - ample cash biotech is collaborating with pharma giant TEVA (TEVA) among many others [Dr. Reddy's Laboratories (RDY), Jazz Pharmaceuticals (JAZZ), Ferring Pharmaceuticals, JCR Pharmaceuticals, Population Council, and BioSante] and quarter after quarter is generating increasing revenue over the last three years. I could be wrong, but I think this company could be a sleeper stock. If the market takes note of Antares, it could launch a triple digit rally and substantially increased volume activity.
Disclosure: I have no positions in any stocks mentioned, but may initiate a short position in BPAX, SUPG, ACAD, AEZS, AIS, RNN over the next 72 hours.