1:10pm (EST)
The market opened slightly higher but was unable to hold its gains as the bulls and bears position themselves for this week’s battle. We have been in a tight trading range for much of the day but the sentiment is a little bearish after President Obama proposed a new Medicare tax on unearned income and $10 billion in additional fees on drug companies.
The bulls may be in a wait-and-see mood which could lead to some lackluster trading as they wait for more earnings reports this week.
Speaking of earnings, Campbell Soup (CPB, $33.33, down $0.60) reported numbers of $259 million, or $0.74 a share, versus $233 million, or $0.64 a share, in the year-earlier quarter. Sales rose 1% to $2.15 billion. Wall Street had forecast Campbell to earn $0.73 a share on sales of $2.2 billion. Although earnings rose 11% as the company’s margins improved, it continued to see weakness in U.S. soup sales and volume fell 2%.
We mentioned Dendreon (DNDN, $32.89, up $0.53) this morning after the stock was up in pre-market trading. JPMorgan (JPM, $40.71, up $0.68) came out with an ”Overweight” rating and a $46 price target on our favorite Drug stock. The call is based upon a belief that Provenge will be approved for advanced prostate cancer.
Many of you know we have been following this story for over two years and Dendreon was by far our biggest trade return last year as our subscribers rode the stock from $4 to the mid $20′s.
There are also higher “unofficial” price targets for Dendreon but the drug must get approval first before we say it’s headed past $50. However, we think shares can hit over $100 in the next two years if Provenge is approved but it will depend on how well the company handles the transition from small town Billy to big town Bobby as sales are expected to reach over $1 billion.
We also mentioned Dendreon on our Watch List last Wednesday in our Members Area and told our subscribers about the “triple-top” resistance that was at $30-$31 and to watch for a breakthrough. We also listed an option trade that is now up 50%. We were waiting for the February options to expire before making this an “official” recommendation but the train left us.
We are still looking at other trades for Dendreon but we don’t want to chase with the options we have already talked about. There will be another opportunity for us to buy some options and that may come this week or next month as we do feel an explosive move higher is forthcoming.
As we head to press, the Dow is down 6 points to 10,396. We have a lot of updates to cover in our Members Area so let’s get to it…
Tags: CPB, dndn, JPM, option picks, option signals, options alerts, stock options trading
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on Monday, February 22nd, 2010 at 1:11 PM and is filed under BioTech, Company Commentary, Earnings, Hot Stocks, Market Analysis, Market Commentary, Trading Psychology, Trading Tips.
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Market Tight As Traders Look For Clues
1:10pm (EST)
The market opened slightly higher but was unable to hold its gains as the bulls and bears position themselves for this week’s battle. We have been in a tight trading range for much of the day but the sentiment is a little bearish after President Obama proposed a new Medicare tax on unearned income and $10 billion in additional fees on drug companies.
The bulls may be in a wait-and-see mood which could lead to some lackluster trading as they wait for more earnings reports this week.
Speaking of earnings, Campbell Soup (CPB, $33.33, down $0.60) reported numbers of $259 million, or $0.74 a share, versus $233 million, or $0.64 a share, in the year-earlier quarter. Sales rose 1% to $2.15 billion. Wall Street had forecast Campbell to earn $0.73 a share on sales of $2.2 billion. Although earnings rose 11% as the company’s margins improved, it continued to see weakness in U.S. soup sales and volume fell 2%.
We mentioned Dendreon (DNDN, $32.89, up $0.53) this morning after the stock was up in pre-market trading. JPMorgan (JPM, $40.71, up $0.68) came out with an ”Overweight” rating and a $46 price target on our favorite Drug stock. The call is based upon a belief that Provenge will be approved for advanced prostate cancer.
Many of you know we have been following this story for over two years and Dendreon was by far our biggest trade return last year as our subscribers rode the stock from $4 to the mid $20′s.
There are also higher “unofficial” price targets for Dendreon but the drug must get approval first before we say it’s headed past $50. However, we think shares can hit over $100 in the next two years if Provenge is approved but it will depend on how well the company handles the transition from small town Billy to big town Bobby as sales are expected to reach over $1 billion.
We also mentioned Dendreon on our Watch List last Wednesday in our Members Area and told our subscribers about the “triple-top” resistance that was at $30-$31 and to watch for a breakthrough. We also listed an option trade that is now up 50%. We were waiting for the February options to expire before making this an “official” recommendation but the train left us.
We are still looking at other trades for Dendreon but we don’t want to chase with the options we have already talked about. There will be another opportunity for us to buy some options and that may come this week or next month as we do feel an explosive move higher is forthcoming.
As we head to press, the Dow is down 6 points to 10,396. We have a lot of updates to cover in our Members Area so let’s get to it…
Tags: CPB, dndn, JPM, option picks, option signals, options alerts, stock options trading
This entry was posted on Monday, February 22nd, 2010 at 1:11 PM and is filed under BioTech, Company Commentary, Earnings, Hot Stocks, Market Analysis, Market Commentary, Trading Psychology, Trading Tips. You can follow any responses to this entry through the RSS 2.0 feed. Both comments and pings are currently closed.