This is a copy of the Weekend Update sent out to my Blue Line Trading subscribers this weekend. I've come across two very intriguing biotechnology companies that could both save lives and make a lot of money for their shareholders. No guarantees for either outcome, but huge potential for both.
First: A Brief Big Picture Update
The Nasdaq fell over 200 points last week, the equ
ivalent of about 500 Dow points. Whether or not that drop is meaningful as harbinger of more to come, is impossible to know. If the market is near its long anticipated (by me) severe decline, this would be how it might start. An innocuous drop in the bucket decline that looks more like a hiccup in a bull market than anything more threatening.
Second: Trading Update: No new trade for Monday
Endocyte (ECYT) and Xenon (XENE)
This weekend I am departing a bit from out usual round-up of the week's trading and big picture analysis of the stock market to recommend two new biotechnology stocks. These have nothing to do with our stock option trading system, but have everything to do with making money in the stock market, especially over the next two years. These two ideas come from an Israeli Biotechnology Venture Capital Fund who have had outstanding success over the past five years in participating in bringing a number of developmental biotech companies public.
These two biotech's are already up substantially YTD, but there is reason to believe that not only are these runs are in their infant stages. Both up about 300% since January with price momentum showing no signs of abating. Both companies are also prime acquisition targets by big pharma hungry for new and promising drugs already well along into development. If you have been following me for any period of time more than a baseball season you know already the trend is all I care about, but if you throw in backing by a successful VC firm, solid pipelines and reasonable (if not cheap) market valuations, the stocks become compelling speculations in an explosive sector.
My part is to find potential multi-baggers, do my own due diligence, bless the charts and bring them to your attention. Their respective websites are linked below for further review and I highly recommend taking a look around. They are both into some exciting medical research and development. They are the future of medical treatment and the future is what wakes us up every morning.
Endocyte (ECYT) - Targeted Therapeutics for cancer treatments.
"Our novel therapeutics are designed to precisely deliver potent cancer therapies directly to the site of disease. Paired with companion imaging agents, this approach allows us to select the appropriate patient for our therapy, treating their disease while sparing healthy tissues.."
Xenon (XENE) - Genetic treatments for neurological disorders
"Xenon Pharmaceuticals Inc., a clinical-stage biopharmaceutical company, engages in developing therapeutics to treat patients with neurological disorders in Canada. The company uses Extreme Genetics, a core enabling discovery platform for the discovery of validated drug targets by studying rare human diseases with extreme traits, including diseases caused by mutations in ion channels, known as channelopathies."