Jim Van Meerten's  Instablog

On Financial Tides although I like to flow with the tides sometimes there are opportunities in the opposite direction. At Alnylam Paharmaceuticals things appear to be going badly. Alnylam Pharmaceuticals, Inc., is a biopharmaceutical company, and engages in the development and commercialization of novel therapeutics based on RNA interference (RNAi). The company's lead RNAi therapeutic program includes ALN-RSV01, a phase II clinical trial product for the treatment of respiratory syncytial virus (RSV) infection. It develops RNAi therapeutics for the treatment of liver cancers, hypercholesterolemia, Huntington's disease, and transthyretin amyloidosis.

Although the company sounds like its poised in the right place, administratively it's a mess. Administrative cost are out of control and the 2 acquisitions that analyst counted on are going badly. The only press the company has had recently are larger projected losses. The analyst are estimating a 10.9% revenue increase but an earnings per share shrinkage of 5.6%. 4 of the 9 analyst following this stock have lowered their EPS forecast in the last 30 days. Not good.

Barchart rates this stock a 96% sell with 12 of 13 technical indicators a sell and only 1 hold. The stock has had 16 new lows in the last 20 days and lost 23.5% of its price in the last 65 days. The chart is a disaster.

Recommendation : If you own ALNY sell it, if you don't, sell it short above 16 with a buy stop to cover at not more than 18.

Jim Van Meerten is an investor who writes on financial matters here and on Financial Tides. Please leave a comment below or email FinancialTides@gmail.com

Disclosure: I hold no position in ALNY at the time of this publication.