Wang’s Happy Trading

Submitted by OptionDragon

The Strokes - What Ever Happened? (Marie Antoinette)

DNA got approval for Avastin in breast cancer and was expected by us and our biotech analyst Biotechman. DNA is currently at $77.41, gapping up. The approval does reaccelerate Avastin growth in sales for 2008 and we do expect continued strength since this approval was not priced in due to the December drop based on a negative panel vote.
Analyst note: Genentech-DNA incrementally pos on stock after FDA approves Avastin-reit OP@BARD
The firm increased their 2008 EPS estimate after Avastin was approved for treatment of breast cancer; furthermore, the firm thinks additional clinical events may bring further mometnum throughout the rest of the year. BARD advises they are buyers of the stock into the high-$80s range and raised their target price to $88
Analyst note: Genentech-DNA FDA approves Avastin for treating breast cancer-maint MP@FBRC
The approval was a surprising one and the firm advises there could be a downside in the drug’s sales including AVADO showing half-dose Avastin is just as efficacious as full-dose and Street projections for breast cancer growth may be aggressive from this point. FBRC increased their Avastin sales estimates and target price to $76 from $67
Analyst note: Genentech-DNA target raised to $84 from $80, maintain Outperform@RBCM
RBC raised their Avastin forecasts after the positive AVADO data to reflect a May launch

TTWO is getting a HUGE bid from ERTS and is gapping up big $8.45. The bid might become a hostile takeover as TTWO executives want to stay independent.
Analyst note: Take-Two-TTWO: Recommend selling shares on today’s strength@PACS
Pacific Crest believes Grand Theft Auto success is priced into shares at current levels and do not expect a second bidder or substantially higher bid from ERTS

GS is reporting that JPM might write off another $3.4 billion. This is pulling down the financials.

ABK may announce a new financial injection led by banks which would keep ABK from being downgraded the news can hit at anytime and would boost the market so be careful with shorts in the short term.

GTXI, which was on Biotechman’s radar (boy is he hot! He said he got blindsided and wanted in before) is gapping up (high short interest) big due to Phase III trials that met their primary positive endpoint in prostate cancer. The news is earlier than expected, it was slated to come out later next month. The drug’s name Toremifene Citrate. The news caught Biotechman off guard but it was a planned event. Also up is KERX slated for the end of next month, the drug’s name is Sulonex in Diabetic Nephropathy, Phase III trial results. Also another very important one is IMCL’s Erbitux in Non Small Lung Cancer which could be huge and is slated to be presented at ASCO but it is expected to be released earlier than that date. This could have big implications for a big gap up or down in IMCL shares, Steve Cohen’s SAC has been noted, recently by Biotechman, buying a 4.96% stake in IMCL. SAC is one of the best biotech investors out there and this should be duly noted going forward (SAC also the same who bought a huge stake in UTHR before th big move we got into late last year).

DECK gapping up in anticipation of earnings this week and also an upgrade today.
MTL getting huge upgrade today from Deutsche Securities from $90 to $150
BTU and ANR are both being downgraded by UBS. Could weight on the coal plays today.
FXI and its components are gapping down.
GS gapping down due to the JPM note this morning.
Citigroup (C) is trading down after Oppenheimer & Co reduced its estimates for 2008 and 2009.
Washington Mutual (WM) is trading down after Goldman Sachs downgraded the name to Sell from Neutral.
Marvell Tech (MRVL) is trading up +3% after positive mention in this past weekend’s Barron’s that suggested shares could double in 2 years.

Since we can get the ABK news at anytime and it always seems “just in time” before a major market break I will be looking for longs over shorts today and staying nimble on my feet like Bruce Lee.

Happy Trading and Good Luck!!