Pharmion (
NasdaqNM: PHRM) closed yesterday at $69.40. So far the stock has hit a 52-week low of $23.27 and 52-week high of $71.00. Pharmion stock has been showing support around 68.09 and resistance in the 71.03 range. Technical indicators for the stock are Bullish and S&P gives PHRM a neutral 3 STAR (out of 5) hold rating. For a hedged play on this stock, look at a Jun '08 65 covered call (JUT FM) for a net debit in the $61.80 area. That is also the break even stock price for this trade. This covered call has a 121 day duration, provides 10.95% downside protection and a 5.18% as...(Click the story link or go to http://www.marketintelligencecenter.com for the full story)
Pharmion (
NasdaqNM: PHRM) closed yesterday at $69.40. So far the stock has hit a 52-week low of $23.27 and 52-week high of $70.12. Pharmion stock has been showing support around 68.17 and resistance in the 70.55 range. Technical indicators for the stock are Bullish and S&P gives PHRM a neutral 3 STAR (out of 5) hold rating. For a hedged play on this stock, look at a Jun '08 65 covered call (JUT FM) for a net debit in the $61.70 area. That is also the break even stock price for this trade. This covered call has a 135 day duration, provides 11.10% downside protection and a 5.35% assigned return rate for a 14.46% annualized return rate (comparison purposes only). A lower cost hedged play for this stock would use a longer term call option in place of the covered call stock purchase. To use this strategy look at going long the PHRM Jan '09 35 Call (XBB AG) and selling the Jun '08 65 call (JUT FM) for a $28.15 debit. The trade has a 135 day life and would provide 9.01% downside protection and a 6.57% assigned return rate for an 18.00% annualized return rate (for comparison purposes only). Pharmion does not pay dividends at this time. [IHF - Investors Observer]
After warning that Celgene (NASDAQ: CELG) would only achieve the low end of its previous guidance range for 2009, the stock of the company sold off significantly, noted biotech expert John McCamant.[More...]
The Securities and Exchange Commission (SEC), concerned about its recent bad press, continues to prosecute insider trading through the Christmas season. Last week, the regulatory body charged seven individuals and two companies involved in an insider trading ring. The SEC alleged that Matthew Devlin, formerly of Lehman Brothers, traded on and tipped his clients and friends with confidential and non-public information about 13 impending corporate transactions. Some of these friends, who worked in the financial or legal professions, also tipped off other clients. Devlin obtained the privileged information from his wife, a partner in the NYC office of an international public relations firm working on the deals. The illicit trading occurred from at least March 2004 through July 2008, yielding more than $4.8 million in profits. Devlin was also rewarded with cash and luxury items in exchange for the information, including a widescreen TV,[More...]
We are maintaining our Buy recommendation on Joy Global (JOYG). The global coal market appears strong as supply and demand fundamentals should keep prices elevated for the next several years. This will be a benefit to Joy as it is the world's leading manufacturer of mining machinery in the world. Sales and bookings were impressive in Q3 reflecting producer's positive long-term outlook for coal prices. Joy's industry leading operating margins look to improve on the back of several cost cutting and capacity expansion initiatives that will be felt as early as 2009. However we are lowering our target price from $84.00 to $71.00 per share due contraction of our valuation multiples. Although already an industry leader in operating margins, the growth and cost initiatives put in place will pave the way for higher revenues, margins and[More...]
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