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  • Fighting the Good Fight to Hold the Line: PNX, OREX, LXRX 0 comments
    Aug 2, 2011 4:05 PM | about stocks: PNX, OREX, LXRX

    These three companies, Phoenix Companies Inc (NYSE: PNX), Orexigen Therapeutics Inc (NASDAQ: OREX), and Lexicon Pharmaceuticals Inc (NASDAQ: LXRX) have all been fighting to hold their ground after the broader markets recuperate from last weeks’ trauma…

    The stock of Phoenix Companies, the life insurance concern, has done a pretty good job in maintaining shareholder value during the last two months and I think that directly addresses its future potential. After a late May dip to $2.10 the stock bounced back in a strong fashion and opened June at $2.40.

    In the last two months, the stock has vacillated between $2.30 and $2.55, a twenty five cent spreadpretty impressive to me. A lot of ‘financial sector’ companies have been clobbered during those same two months. Phoenix Companies is currently trading in the $2.35 range. While daily trading has been choppy; up and down and up and down, the Company has held its line. The Company will have an earnings call this Thursday.

    Lexicon Pharmaceuticals jumped from $1.42 in late June to $1.80 in July and again, within 25 cents, has held its own in that range. July was also full of a lot of choppy trading for this stock as well with lots of little dips and spikes. The stock is currently trading in the higher end of the line at $1.79.

    It was trading in this range in April. With very few short sellers, a positive quarter over quarter EPS projections, and one of its many drug candidates recently successfully completing a Phase I trial, the stock could rally a break out in the immediate term (6 weeks), and head for $2.

    Over at another pharmaceutical concern, Orexigen Therapeutics, one of the ‘big three’ obesity drug investments, the story has been and remains; “All’s quiet on the Western Front.” The stock was trading in the $2 at the beginning of June and for the last two months, has, within a few cents in either direction, held that level.

    It is currently trading in the lower end of that line at $1.72. With normal number of short sellers and positive sales and EPS projections, I think  Orexigen Therapeutics will stay in this range until 1) the FDA makes some relevant announcement on obesity drugs in general (which it is unlikely to do), or 2) the Company announces a new plan attack for its overall ‘obesity’ strategy.

    Stocks: PNX, OREX, LXRX
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