The Deipnosophist

Where the science of investing becomes an art of living

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Location: Summerlin, Nevada, United States

A private investor for 20+ years, I manage private portfolios and write about investing. You can read my market musings on three different sites: 1) The Deipnosophist, dedicated to teaching the market's processes and mechanics; 2) Investment Poetry, a subscription site dedicated to real time investment recommendations; and 3) Seeking Alpha, a combination of the other two sites with a mix of reprints from this site and all-original content. See you here, there, or the other site!

10 January 2007

Big move coming

I have posted previously (several times, in fact) re the growing opportunity for us investors in Isis Pharmaceuticals/ISIS. Remember, among its other pipeline opportunities, this company has a key statin deep into the clinical trials process, and all accounts have it that this drug shows a marked improvement over other statins currently available or in trials. (Including the one from Arena Pharmaceuticals/ARNA.) This helps make the company a leading takeover candidate by an old-line ethical drug manufacturer such as Pfizer/PFE, whose own drug felled its hopes to create one internally. (Verily, half of that drug was the result of the wholesale purchase of another company to obtain its drug!) I prefer a buyout not occur... Well, at least not yet.

So, yes, as ISIS shares near an inflection point (in fact, two distinct inflection points from opposite directions), a big move appears imminent. Multiple levels of trading support lie at ~$10, and multiple levels of resistance converge at ~$11.50. This translates as an approximately 10% range between the two. This squeeze can continue to compress, could even breakdown albeit ephemerally; upside momentum, however, busily and quickly refreshes itself. And nears completion. The moment -- a breakout in one direction or the other -- appears nigh. I believe the breakout will be up. (btw, please recall that investor support lies at ~$8, above which the long term dynamics for this stock changed immediately and positively. The difference is time frame, and thus objectives. Always align the two!)

Thus, I place this opportunity front & center. It joins other recent winners, which includes among other favorites, Apple Computer/AAPL (remember that one, naysayers?) and Zumiez/ZUMZ -- which also nears an explosive move higher.

-- David M Gordon / The Deipnosophist

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