ELN
With the latest J&J cash infusion and partnership, ELN now has all the tools to succeed, money & strong pharma support / validation of its pipeline... Two clouds remain, the PML issue, although with no real news or development, continue to be used relentlessly by the short cabal to drive the PPS down every time a case is reported... I don't know how long this will be allowed to go on, as the FDA allows for 1/1000 case to occur and with all the reported case we are well below that rate. The second cloud is the management strength, let's hope they don't waste the new opportunity they've been given. The current stock price does not reflect the new found strength, as a lot of the risk has been removed from stock. I am looking for the low teens in the near future and selling puts to accumulate.
AMLN
What a disappointment this stock has been this second time around! Never, has a management team done so little with so much. They have money, an incredible pipeline, two first and best in class drugs and yet they don't succeed. The root of the problem is the management team and culture that has permeated this company since the beginning. They were essentially a good development team, then after their drugs got approved, essentially did not and still have not changed their mode of operation. They have not been able to successfully switch from being a development biotech to a pharma with products to sell. They have hired poorly and their current CEO is a big part of the problem.. He appears to be a hard worker, but exudes little confidence and is a horrible communicator... Anyway, enough ramblings... What to do?
I am staying put with my holdings, the upside is still great, but I probably will exit in the mid 20's if the pps gets there. The catalyst for a move up in the short terms are..
- A rejection of ligaritude ( a byetta competing drug ) by the FDA.. The FDA should reject or at minimum give them an approvable letter, but you will never know with the FDA as they are for the most part a captured and political agency. Note that Ligar has just been approved in Europe.
- Monotherapy for byetta. Its a decision that's more then 6 months behind schedule. I do not understand why the FDA has not responded yet, scratch that, I do understand, see above comments.
- Clarification of the Byetta label and the removal of the pancreatitis cloud from Byetta. Again, the FDA botched that one. They issued a safety warning for byetta for pancreatitis when the rate of occurrence is at worse equal to the diabetic population. The reality is even more perplexing, since byetta is prescribed to obese patient because of its weight loss proprety, the byetta population is even more prone to pancreatitis. So, the data seems to indicate that Byetta actually decreases the rate of pancreatitis... But go figure our FDA, they issue a warning, what a bunch of boobs!!!
But ultimately, its the role of management to play whatever game the FDA needs them to play to get these things done... And this management team just does not know how to play the game. The recent Icahn and eastbourne BOD wins, have yet to translate to any material changes .
A note of caution. A ligaritude approval could eviscerate the byetta scrips and send the PPS back to the single digits.
Showing posts with label dndn. Show all posts
Showing posts with label dndn. Show all posts
Friday, July 3, 2009
Monday, June 1, 2009
AMLN, ELN, DNDN - Brief updates
AMLN
Essentially, I am staying put and really not adding anymore shares. Right now, I am not giving much "weight" pun intended to the obesity pipeline. My reasoning is that Amylin with current management and its approach to marketing and sales, have not demonstrated that they can have a blockbuster injectable when going against inferior oral drugs... I will turn on a dime if they start doing better... Maybe the new VP can turn it around... But certainly based on side effect and efficacy, Amylin obesity drugs should dominate... But then again so should symlin and byetta... So until management can show me what they can do in sales with Byetta and LAR, I am ignoring the obesity potential.
DNDN
Nothing new to report. Same strategy as previously posted.
ELN
I have increased my activities in ELN, sold more puts with the intent to add to my initial shares... The more I learn about Tysabri and the positive impact it has on MS patients (see link: http://www.youtube.com/watch?v=1JXDLHcWyws ), the more I think this stock is very undervalued and certainly could do a 4-5x from here. The problem is that I never buy all the shares I want to own in a company all at once... I build the investment in stages, as I learn about the company and get more comfortable with the various forces that affect the share price. Typically I build the position in 4 or 5 stages. I have done stage I with ELN, but this time, I might not have time to add more... The stock jumped a bit today on news that Bristol-Myer, might be interested in buying a piece of ELN. So I probably wont be adding shares by selling puts, I had the June $6... I will have to decide if I should just buy stage II in the open market.
Essentially, I am staying put and really not adding anymore shares. Right now, I am not giving much "weight" pun intended to the obesity pipeline. My reasoning is that Amylin with current management and its approach to marketing and sales, have not demonstrated that they can have a blockbuster injectable when going against inferior oral drugs... I will turn on a dime if they start doing better... Maybe the new VP can turn it around... But certainly based on side effect and efficacy, Amylin obesity drugs should dominate... But then again so should symlin and byetta... So until management can show me what they can do in sales with Byetta and LAR, I am ignoring the obesity potential.
DNDN
Nothing new to report. Same strategy as previously posted.
ELN
I have increased my activities in ELN, sold more puts with the intent to add to my initial shares... The more I learn about Tysabri and the positive impact it has on MS patients (see link: http://www.youtube.com/watch?v=1JXDLHcWyws ), the more I think this stock is very undervalued and certainly could do a 4-5x from here. The problem is that I never buy all the shares I want to own in a company all at once... I build the investment in stages, as I learn about the company and get more comfortable with the various forces that affect the share price. Typically I build the position in 4 or 5 stages. I have done stage I with ELN, but this time, I might not have time to add more... The stock jumped a bit today on news that Bristol-Myer, might be interested in buying a piece of ELN. So I probably wont be adding shares by selling puts, I had the June $6... I will have to decide if I should just buy stage II in the open market.
Saturday, May 23, 2009
May update - DNDN, AMLN. ELN
DNDN
Obviously, I am very happy about DNDN as we saw some very positive results from the Provenge trial and the stock went up 500% from where I bought it. I did a few trade to reposition myself in the stock and generate some cash....
Although I am still very bullish on the stock and have a 1-2 years time horizon, I sold roughly 20% of my holdings to take out my initial investment. I also sold some puts from $10-$15 to try to add more shares if the stock fell to that level. Concurrently I sold Jan 2010 $30 puts and got $15. What this means is that if the stock gets to $30 by January I get to keep $15... If the stock stays below $30, I get to buy it for a net of $15. For anyone reading this don't hesitate to call if you have any questions.
My next look at taking more money of the table would come when the stock gets in the $40 range which I expect will happen within the next couple of years and I will continue trading DNDN options to add shares or generate cash over that time period
AMLN
AMLN is the first stock that I held a large position in and one that I am again accumulating because it is very undervalued at these levels ( see earlier posts for valuation discussion). Icahn has done the same thing, so I feel that I am in good company. The main problem with AMLN is its management, they have utterly failed to take advantage of the incredibly life changing two first in class diabetic drug that the company has. It is really a shame both for diabetics and for shareholders. The only hope for AMLN is a change management. Again, I feel very validated in my thinking as Icahn is also seeking a change in management. For the record, I came to that decision before him, lol... See below an email that I sent to the company.
I bought more stock since I last posted my latest buy being at $11, I have also been selling puts along the way. My latest being at $10
Anyway, I am bullish on the stock relatively short term and also longer term. In the short term, I expect byetta monotherapy approval and label clarification. There is significant risk in owning this stock beyond the normal stock risks. Obviously should the mono decision and or the label go against them, then the stock could fall in the $5 range. Also, besides Icahn, there are big institutional holders of this stock, and should any of them get fed up with management and decide to unwind their position, it could be painfull. But I remain bullish in the short term, I think high teen to $20 is achievable in the next few months and in the long term a price above $40, if Icahn doesn't push for a sale before that...
My letter to AMLN
Hi Alice,
I am a small individual Amylin shareholder. For what its worth, this is why I am not voting for Amylin's slate of nominees.
- Amylin's inability to defend byetta in the court of public opinion, in the press and investment community, and even with GP's regarding the pancreatitis issue.
- Overly generous compensation for its executives and BOD, particularly in light of PPS performance and experience level.
- Since Joe departed the CEO post, the board has hired two essentially inexperienced and weak CEO's. This at a time when the company needed a strong hand the most.- Inexcusable delay in applying for Byetta monotherapy. That was a big strategic mistake particularly in light of having received an unexpected gift of an approvable letter from the FDA
- What appears to have been an unchecked hiring binge and increase of non essential expenses, such as the construction of an expensive cafeteria.
- The delay in the LAR filing time line, that completely took the investment community by surprise when initially revealed
- What appears to be an inept PR department, which lays squarely at the feet of the CEO.
- Management was not able to recognize the Januvia threat, incorrectly stating that it was not competition, when it clearly took a big bite out of byetta sales.
- Very, very weak marketing, branding efforts for Symlin and Byetta. Symlin should have much bigger penetration with type I's.
- Although the FDA is an agency that is very difficult to deal with, the inability to clear up the label issue and obtain monotherapy for byetta is a clear indication of an at best ineffective relationship with the FDA.Interestingly, when it came to saving their jobs, Amylin executives have finally shown the fervor, passion and aggressiveness I wish they have had when conducting all other shareholders business. I would appreciate it if you shared this letter with all executives and board members and would be more then happy to discuss it with them in person.
Best,
zino
Obviously, I am very happy about DNDN as we saw some very positive results from the Provenge trial and the stock went up 500% from where I bought it. I did a few trade to reposition myself in the stock and generate some cash....
Although I am still very bullish on the stock and have a 1-2 years time horizon, I sold roughly 20% of my holdings to take out my initial investment. I also sold some puts from $10-$15 to try to add more shares if the stock fell to that level. Concurrently I sold Jan 2010 $30 puts and got $15. What this means is that if the stock gets to $30 by January I get to keep $15... If the stock stays below $30, I get to buy it for a net of $15. For anyone reading this don't hesitate to call if you have any questions.
My next look at taking more money of the table would come when the stock gets in the $40 range which I expect will happen within the next couple of years and I will continue trading DNDN options to add shares or generate cash over that time period
AMLN
AMLN is the first stock that I held a large position in and one that I am again accumulating because it is very undervalued at these levels ( see earlier posts for valuation discussion). Icahn has done the same thing, so I feel that I am in good company. The main problem with AMLN is its management, they have utterly failed to take advantage of the incredibly life changing two first in class diabetic drug that the company has. It is really a shame both for diabetics and for shareholders. The only hope for AMLN is a change management. Again, I feel very validated in my thinking as Icahn is also seeking a change in management. For the record, I came to that decision before him, lol... See below an email that I sent to the company.
I bought more stock since I last posted my latest buy being at $11, I have also been selling puts along the way. My latest being at $10
Anyway, I am bullish on the stock relatively short term and also longer term. In the short term, I expect byetta monotherapy approval and label clarification. There is significant risk in owning this stock beyond the normal stock risks. Obviously should the mono decision and or the label go against them, then the stock could fall in the $5 range. Also, besides Icahn, there are big institutional holders of this stock, and should any of them get fed up with management and decide to unwind their position, it could be painfull. But I remain bullish in the short term, I think high teen to $20 is achievable in the next few months and in the long term a price above $40, if Icahn doesn't push for a sale before that...
My letter to AMLN
Hi Alice,
I am a small individual Amylin shareholder. For what its worth, this is why I am not voting for Amylin's slate of nominees.
- Amylin's inability to defend byetta in the court of public opinion, in the press and investment community, and even with GP's regarding the pancreatitis issue.
- Overly generous compensation for its executives and BOD, particularly in light of PPS performance and experience level.
- Since Joe departed the CEO post, the board has hired two essentially inexperienced and weak CEO's. This at a time when the company needed a strong hand the most.- Inexcusable delay in applying for Byetta monotherapy. That was a big strategic mistake particularly in light of having received an unexpected gift of an approvable letter from the FDA
- What appears to have been an unchecked hiring binge and increase of non essential expenses, such as the construction of an expensive cafeteria.
- The delay in the LAR filing time line, that completely took the investment community by surprise when initially revealed
- What appears to be an inept PR department, which lays squarely at the feet of the CEO.
- Management was not able to recognize the Januvia threat, incorrectly stating that it was not competition, when it clearly took a big bite out of byetta sales.
- Very, very weak marketing, branding efforts for Symlin and Byetta. Symlin should have much bigger penetration with type I's.
- Although the FDA is an agency that is very difficult to deal with, the inability to clear up the label issue and obtain monotherapy for byetta is a clear indication of an at best ineffective relationship with the FDA.Interestingly, when it came to saving their jobs, Amylin executives have finally shown the fervor, passion and aggressiveness I wish they have had when conducting all other shareholders business. I would appreciate it if you shared this letter with all executives and board members and would be more then happy to discuss it with them in person.
Best,
zino
Thursday, June 5, 2008
My best stock picks - June 5th 2008
AMLN:
I have owned AMLN for years. I first accumulated AMLN when the stock was around $8... I sold all my position in 2006 at $43. I started accumulating AMLN again this year. I feel that there are near to mid term catalysts that could double the price per share. The share price today 6/5/08 is $32.5.
DNDN:
I bought DNDN last year at around $5 and saw it catapult to $25 after a couple of months. I did not sell because I felt the stock had a much higher potential. I did not count on the corruption at the FDA to raise its ugly head. The stock went back down to $5. This stock is not for the faint of heart. It has an incredible mid and long term upside but also some mid term risk. I will expand on both at a later time
I have owned AMLN for years. I first accumulated AMLN when the stock was around $8... I sold all my position in 2006 at $43. I started accumulating AMLN again this year. I feel that there are near to mid term catalysts that could double the price per share. The share price today 6/5/08 is $32.5.
DNDN:
I bought DNDN last year at around $5 and saw it catapult to $25 after a couple of months. I did not sell because I felt the stock had a much higher potential. I did not count on the corruption at the FDA to raise its ugly head. The stock went back down to $5. This stock is not for the faint of heart. It has an incredible mid and long term upside but also some mid term risk. I will expand on both at a later time
Subscribe to:
Posts (Atom)
