Biotech is in Play – OSI Pharmaceuiticals
The 50% premium being paid for OSIP by Astellas, which is roughly $52/share, was actually rejected by the board. The market is pricing the stock at $56, and I think the stock climbs another $10 from here. There will be another bidder.
The M&A attention is bullish for the sector. There are some good plays out there.
The big gap to the left on the below chart of PDLI is one reason to be long this stock. Another reason is the Green indicator at the top, which is a modified Money Flow indicator. The lower Blue line is a modified Accumulation indicator. Notice how both have turned up sharply while the stock has barely budged out of this tight range since mid-Feb?
Click on the image for Higher Resolution
Now, take a quick peak at the Biotechnology Index going back to 1992. Seriously, click on the link and take a look. This is a monster chart. She’s in new all-time territory. The blue and green lines are Fib. projection and retracement lines. I’ll let you guess which one’s. Swing Traders should be lurking in these stocks.
Disclaimer: Author is a shareholder of PDLI.
