Where is the top? To the moon I guess? Another strong week last week bringing us up to a $SPY new all time high of 167.05 ($ES_F hit 1665.75).

Next stop could be 170.00 as shorts continue to short and squeezed out of their positions. When will they ever learn?

Personally, I’m just staying long and sticking to catalysts for now. There are a few decent ones coming up such as $ATRS $RMTI $XNPT $SRPT which I will explain in greater detail below. For now, it is still a BTFD market.

If any of you guys live in New York, I will be there for a week on a business trip, and I would love to meet some of you guys! If you wanna meet up just shoot me an email or tweet.

NOTE: If you have not been added to the private twitter feed, you must send a ‘follow’ request to @BioStocksMember. Then you must email me (Brett@BioStocks.com) your Biostocks username and twitter username before access is granted. If you fail to do either of these two steps, you will not get access to the real-time trade alerts and ideas. The private twitter feed is one of the BEST TOOLS I offer. It presents my up-to-date opinion on everything we are playing.

$ATRS (Antares Pharma Inc.)

Finally got in last week. Higher than I wanted, but it is a starters position just incase we take off. I honestly think it might not look back, especially with Sheff and Scott now behind it. Sheff added of Friday which explains why it ran to 4.15 after hours. You guys probably already know why I like this one, it is a rare company that is near profitability as a small cap biotech (which is unheard of). Many think that it is going to be bought out soon, however I do not bet on buy outs. Otrexup has a PDUFA date of Oct 14, 2013 which is the catalyst that could send it flying. 5.50-6.00 is definitely possible by then but.. I HATE CHASING. 

$ESI (ITT Educational Services Inc.)

I wrote an article on this one. HUGE profits for us. The new level to watch is 25.10.. below that I might short, but if we hold it, I might get back in long.

When the market is soaring as it has over the recent months, stocks that have been demolished over the last year or so begin to spark. We have seen great recoveries among many stocks, and investors have captured extraordinary gains from these picks. In this article I plan on pointing out a stock that I believe could make one of these great recoveries, and the similarities it has with companies that have already made the journey.

ITT Educational Services Inc. (ESI) offers postsecondary-degree programs in the U.S. that provide diplomas as well as associate’s, bachelor’s, and master’s degrees in information technology, electronics technology, drafting and design, business, criminal justice, and health sciences. As of Mar. 22, the company operated 140 ITT Technical Institutes in 39 states that primarily offer career-oriented degree programs to about 70,000 students. Headquartered in Carmel, Ind., ITT was started in 1946.

What Caused the Recent Spark:

On 4/25/13 ESI reported their Q1 earnings. They reported $1.33 per share in the first quarter of 2013 which surpassed the Zacks Consensus Estimate of $1.28 by 3.9%. The beat could possibly be caused by unemployment dropping and the demand for skilled individuals increasing. This is an incentive for students to get additional education for a better opportunity to find an employer. Regardless of the reason, this caused a pop that got shorts to start worrying. Recent earnings beats have caused massive runs in stocks with high short interest like Molycorp (MCP) for example. On 5/9/13 MCP began a 38% run that isn’t over yet. This run started from them reporting that net revenues for the quarter were $146.4 million, up 9% from the fourth quarter of 2012. This perfect example of a massive run starting from good news is helped by large short interest.

High Short Interest:

High short interest in a stock can cause huge short squeezes that can prove very profitable for those on the long side. A short squeeze is when a lack of supply meets an excess demand of a stock and the price is forced upwards. During a short squeeze, those holding short positions are usually forced to purchase shares where the price increases rapidly, in order to exit their short position. These situations escalate as price rises higher and more shorts are forced to cover the higher it goes. In this case, ESI has one of the top short interests in the S&P 1500 which sits at 37.65% of the entire float. This means there is currently8,753,617 shares short as of 5/13/13. Now, with the new upwards pressure on the stock after a 92% decline from its highs in the recent years, shorts are being tested and it is likely that they will cover their positions.

Low Float:

The float of a stock is the total outstanding shares that are currently being traded by the public. This figure is derived by taking a company’s outstanding shares and subtracting from it any restricted stock. When a stock has a low float, it means that there are less shares to be traded. This is significant because it takes less money to move the stock higher. With only 23.25 million shares in the float, it is much easier to cause the short squeeze talked about above.

Oversold Price Action Creates Limited Downside:

After selling off from $133.75 to $11.69 in the recent years, the share holders have de-risked a ton causing limited downside. This shows that if the company turns things around like it is appearing to, the share price can soar. A 92% decline is pretty significant, and has offered value investors an amazing opportunity to enter. Great declines have seen great recoveries in the past. For example, First Solar Inc. (FSLR) sold off from $317.00 to $11.43 and has now made a recovery of more than 400%+. Their earnings beat and catalyst deal sent them flying just like I believe ESI is soon to do. Again, this was another company with large short interest and also had the “Recovery Breakout Chart” that I will explain next.

Near Perfect Technical Chart:

One main chart breakout that is very powerful is what I call a “Recovery Breakout Chart.”

(click to enlarge)

As you can see on the farthest bottom red line, $20.00 had proved tough resistance for many months. When ESI beat earnings estimates, it spiked again to that resistance, but could not break it. This time however, it remained above key EMA’s (9, 20, and 50). This significant base above the EMA’s pushed the stock higher and broke the important resistance of $20.00 on 5/10/13. When stocks break former highs, it usually triggers a breakout as longs pile on for new highs and shorts scramble to get out of the way. ESI also broke the 200 SMA at 22.70 and closed above it. This is significant because it was the last resistance point until $30.00. With nothing but thin air above this stock, it could easily run another 20% to my next target of $30.00.

Conclusion:

US indexes continue to print fresh highs, thus creating massive profits for bulls early in 2013, most notably Netflix Inc. (NFLX) and Tesla Motors Inc. (TSLA).. could ESI be next?

$RMTI (Rockwell Medical Technologies Inc.)

Near term catalyst play here. They have Phase III results for SFP (dialysate iron replacement therapy) expected in July & October. They also have an ANDA Supplement for Calcitriol in the second half of the year. On 3/20/13, they diluted with 4.3M shares at $3/share to raise about 12 mil. They have already burned through a significant portion of that and then on 5/15/13 they raised more cash. 11.5M shares $3.05 to raise $32.8 mil. This is expected to last them well into 2014 since they will not have to burn so much after trials are finished. They have a double bottom formation started and I can see this easily rebounding to 3.75-4.00 or higher.

$SRPT (Sarepta Therapeutics Inc.)

We are staying strong here in my biggest position. Last Friday we broke over 36 and started to fill the gap to the 39′s. Like I have said many times before, I am staying long through the AA decision. I currently own 600 shares and am remaining long-term on it. Most think we will have a decision by early Q3. A total of about 15,000 patients are diagnosed annually in the U.S. with DMD, and about 83% can be treated with these exon skipping treatments. Exon 53 skipping patients make up about 7.7% of all DMD patients, and with an annual treatment cost of about $400,000 per year, Sarepta could bring in $415 million annually in the U.S. alone with accelerated approval (Assuming 90% market capture). This does not take into account the other 2000 or so other boys with exon 53 DMD. Without accelerated approval, I believe revenues would be about $276 million annually in the U.S. (60% market share), not taking into account the initial the patients who are not newly diagnosed. So even if AA is denied, and we fall to 17-20, I still we run back up to 35-40 as new trials are ran and steps are made towards approval.

$XNPT (Xenoport, Inc.)

Finally we HAVE A PULSE. After a long bleed, we have started a recovery. 7.00 or higher is definitely possible before the results out anytime in the second quarter. I am holding 33 $7.00 June calls. 

So you know the hardest part of starting to write something, is actually starting. Well that is especially true right now as I sit here in the blazing 105 degree weather in Palm Springs on this wonderful Mothers Day. I couldn’t really think of a way to start this watch list, so I simply started it by explaining how I don’t know where to start. Which leads me here to my piece of advise.. when you need to write something, just start writing. 

Make sure you tell your Mom’s that you are thankful for them today. They do more for us than we can even begin to comprehend.

Also make sure you guys are getting enough sleep. I average about 5 hours a night because I am up studying plays.. not recommended. You need sleep for a healthy brain and body.

Now on to stocks..

$SPY has gone pretty parabolic on us in the last few weeks. 161.77 is the 9 EMA support and should continue trending on that. I will look to start shorting again once we confirm a break of that (2 candles under the EMA). We could use some consolidation, but it’s pretty much just thin air up here. Next stop 165, maybe 170? Anything is possible. Expect the unexpected. 

$AMRN (Amarin Corporation plc)

Finally a damn uptick after Adam Feurstein and some others bashed it last week because a study on fish oils that proved them inefficient. We caught a nice break on good earnings, and have not only de-risked a ton off the PPS, but some upcoming changes in the indications might help increase sales drastically. Amarin’s AMR101 fish oil differentiates itself in one significant way: AMR is a purely EPA fish oil product (No DHA). BUT that’s not what is important for short-term upside. They recently established the Phase III study for the Anchor trial that potentially opens the market to millions more. This sNDA is significant and will improve sales drastically if it goes through. Anchor is a big deal though and worth a shot for a run to 8+ imo as we set up the r/r trade closer to the 52 week low or now a 7.00 test.

 $ATRS (Antares Pharma Inc.)

It is a rare company that is near profitability as a small cap biotech (which is unheard of). Many think that it is going to be bought out soon, however I do not bet on buy outs. They have a nice base at 3.50 and I will probably take a starters position for the mid to late year catalyst if we dip back down. The recent article hype has been creating this mini run which I think will soon fade, so I would rather not chase at this point. Otrexup has a PDUFA date of Oct 14, 2013 which is the catalyst that could send it flying. 5.50-6.00 is definitely possible by then, so hopefully we get back to the 3.65 area so I can get in. I HATE CHASING. We pushed off the ema’s and bounced Friday, so I am hoping I can get in soon.

$ESI (ITT Educational Services Inc.)

Non-bio, but a nice technical play setting up here. Major trend line and psychological breaks here as we pop. Might be worth a play for more upside tomorrow. Next resistance point is 200 SMA at 23.34. Strong play here. 

$SRPT (Sarepta Pharmaceuticals Inc.)

Long term hold on this for me, as I am up to 600 shares currently with 6/7 full position. I will be holding through AA because either way I see this as a huge profiting opportunity. A total of about 15,000 patients are diagnosed annually in the U.S. with DMD, and about 83% can be treated with these exon skipping treatments. Exon 53 skipping patients make up about 7.7% of all DMD patients, and with an annual treatment cost of about $400,000 per year, Sarepta could bring in $415 million annually in the U.S. alone with accelerated approval (Assuming 90% market capture). This does not take into account the other 2000 or so other boys with exon 53 DMD. Without accelerated approval, I believe revenues would be about $276 million annually in the U.S. (60% market share), not taking into account the initial the patients who are not newly diagnosed. So even if AA is denied, and we fall to 17-20, I still we run back up to 35-40 as new trials are ran and steps are made towards approval. 

$XNPT (Xenoport, Inc.)

We haven’t really moved much. What a shit show this has turned out to be. This is an example of waiting for price action to tell you what to do, AND sticking to your stops. My arrogance has kicked my ass on this one because my research was so thorough and I was way over-confident. For now, the Q2 catalyst still remains, and we are building a base at 6.00. I will be looking for a bounce off this level, but under 5.65 and its pretty much done. I also don’t want to wait too long just because the data could be released anytime (Q2). Just be careful and make sure you aren’t in too big at this point. 

NEW HIGHS AGAIN. Last week we busted the door wide open as $SPY went for a crazy run on Friday that didn’t top out until 161.88! Obviously 160 was a huge psychological resistance point that was broken with good news, so whats next? 165 maybe? There is really nothing up here to gauge it besides thin air. New all time highs are tricky because it is too over-bought to go long, but you don’t wanna short something so relatively strong. Shorts have been squeezed and they could continue to be squeezed for a while as people keep shorting as we keep ripping higher. So whats the key to not losing money? Simple, stick to bio catalysts and don’t get squeezed.

NOTE: If you have not been added to the private twitter feed, you must send a ‘follow’ request to @BioStocksMember. Then you must email me (Brett@BioStocks.com) your Biostocks username and twitter username before access is granted. If you fail to do either of these two steps, you will not get access to the real-time trade alerts and ideas. The private twitter feed is one of the BEST TOOLS I offer. It presents my up-to-date opinion on everything we are playing.

$AMRN (Amarin Corporation plc)

Well, this company has been on one wild ride. Down, down, and further down.. it has dropped like a falling knife. It has recently established new lows at 6.34 and rebounded to 7. We are now dipping again, so the question is, will it hold that 6.34 mark and try to rebound? In my opinion, I think it does. We have not only de-risked a ton off the PPS, but some upcoming changes in the indications might help increase sales drastically. Amarin’s AMR101 fish oil differentiates itself in one significant way: AMR is a purely EPA fish oil product (No DHA). BUT that’s not what is important for short-term upside. They recently established the Phase III study for the Anchor trial that potentially opens the market to millions more. This sNDA is significant and will improve sales drastically if it goes through. They have earnings this week and the scripts numbers out every week. I don’t expect much from the CC, but it could help with encouraging words, etc. Anchor is a big deal though and worth a shot for a run to 7+ imo as we set up the r/r trade closer to the 52 week low. 

$ATRS (Antares Pharma Inc.)

It is a rare company that is near profitability as a small cap biotech (which is unheard of). Many think that it is going to be bought out soon, however I do not bet on buy outs. They have a nice base here on 3.50 and I will probably take a starters position for the mid to late year catalyst if we dip back down. The recent article hype has been creating this mini run which I think will soon fade, so I would rather not chase at this point. Otrexup has a PDUFA date of Oct 14, 2013 which is the catalyst that could send it flying. 5.50-6.00 is definitely possible by then, so hopefully we get back to the 3.65 area so I can get in. I HATE CHASING. 

$AVEO (AVEO Pharmaceuticals, Inc.)

Ummm…can you say ouch? Sorry if any of you held through that massive drop from the panel, but this is a reminder about how risky small cap biotechs are. Do not try to be the hero, and do not risk anything you aren’t ready to lose. They have 3.55/ share in working capital, and 2.50 seems to be the support, but it seems pretty weak reading the level 2. The two trades I see here are: Bounce off 2.50 with stop 2.48, or bounce off 2.00 with stop 1.94. These are nice 1-2,3,4,5 r/r trades.

$SRPT (Sarepta Therapeutics Inc.)

We were rejected at the 50DMA last week, but it was the first time we saw signs of recovery. I think we build a decent base 29-30 here and will start to move up. I’m at 3/4 position now (400 shares) and will look to add more and sell some covered calls once we start running. This is a longer term play for me. I could eventually see this $80.00+.

$XNPT (Xenoport Inc.)

What a shit show this has turned out to be. This is an example of waiting for price action to tell you what to do, AND sticking to your stops. My arrogance has kicked my ass on this one because my research was so thorough and I was way over-confident. For now, the Q2 catalyst still remains, and we are building a base at 6.00. I will be looking for a bounce off this level, but under 5.65 and its pretty much done. I also don’t want to wait too long just because the data could be released anytime (Q2). Just be careful and make sure you aren’t in too big at this point. 

$KWK (Quicksilver Resources Inc.)

Not a bio, but worth a trade IMO. Technical play here with 2.60 resistance. Earnings out tomorrow in the AM. It rarely holds gains and dumps alot, so I might look to short tomorrow. Just something to keep on your radar, but not something I’d play too big. 

Sorry about the late watch list guys, but I was unable to get a computer this weekend while I was away.. then I’ve been at school all day. Now running off 3 hours of sleep. I want to make a few videos for you guys in the near future, so be on the look out for them. Also, I changed the charts I’m using on the watch list.. do you guys have an opinion on which you like better? Tweet or email me your answer!

$SPY looks like it’s heading back to all time highs here as we closed today at 159.30. This bullish sentiment has been nice for our bios and it looks like the bullish trend is back on so far. 159.71 is the all time high and will be a big turning point/breakout point. We have two options here, double top, or new highs breakout. 160 also happens to be a huge psychological number as well as 1600 on the $ES_F. It will not be easy to break these.

NOTE: If you have not been added to the private twitter feed, you must send a ‘follow’ request to @BioStocksMember. Then you must email me (Brett@BioStocks.com) your Biostocks username and twitter username before access is granted. If you fail to do either of these two steps, you will not get access to the real-time trade alerts and ideas. The private twitter feed is one of the BEST TOOLS I offer. It presents my up-to-date opinion on everything we are playing.

$AEZS (AEterna Zentaris Inc.)

This sold off again near the lows and I’m willing to pick it up soon. Many PR catalyst coming up including NDA filing and ASCO abstracts. 1.70 is the 52 week low so I doubt we go lower than that unless we get bad news. I have 300 shares from a partial fill at 1.77 so I am looking to pick some up there or lower. I love the way this chart is setting up as we are attempting to break the 9EMA at 1.83. Need two candles over that for a confirmation, but over 1.90 would be even better.

$ATRS (Antares Pharma Inc.)

The more I dig into this company, the more I am beginning to like it. It is a rare company that is near profitability as a small cap biotech (which is unheard of). Many think that it is going to be bought out soon, however I do not bet on buy outs. They have a nice base here on 3.50 and I will probably take a starters position for the mid to late year catalyst if we dip back down. The recent article hype has been creating this mini run which I think will soon fade, so I would rather not chase at this point

.

$CLSN (Celsion Corp.)

DO NOT FALL FOR THIS TRASH COMPANY. They said they were on the market for a new drug, but yet Thermadox now WORKS? Yea, ok. Red flags all over the place. Just one to stay away from.

$SRPT (Sarepta Therapeutics Inc.)

Looks like we are finally basing at this $30.00 level. I’m looking to add another 100 shares as low as possible before starting to sell covered calls on pops. Remember I am LONG term in this. I will ride out the bumps and hold through hopefully AA acceptance. Worth the risk IMO could go $80+ in the next year. 

$XNPT (Xenoport Inc.)

What a bust on this chart breakdown. We were SO close to a breakout and it seemed like the shit just hit the fan. Some think its because of their slow process on ’829, but it could be anything. For now, I’m looking for a bounce off of 6.00 or a possible washout under it for an add. We need to hold 5.65 or we are REALLY in trouble. I still have a very large position and still am looking for a run into the Q2 Phase III results catalyst. 

Get excited for this week because I think it will be a big one for us. The market pulled back a decent amount last week as things are starting to get a little sketchy. The macro market can only run off Bernanke bull shit for so long. When we crash, I have to say, it wont be pretty. So, you might ask yourself, what can I do to protect myself from this eventual crash? From my experience, there are two things you can do. The first, is to put your capital into near term catalyst plays (like $XNPT), and keep more of your portfolio in cash. The second is trickier and requires decent experience and carries more risk as well, and that is to hedge yourself using inverse market ETF’s. This includes going short market ETF’s like $SPY. Whatever you decide to do, make sure you know what you are doing and you don’t throw away your gains. Now here are some top picks for this week:

NOTE: If you have not been added to the private twitter feed, you must send a ‘follow’ request to @BioStocksMember. Then you must email me (Brett@BioStocks.com) your Biostocks username and twitter username before access is granted. If you fail to do either of these two steps, you will not get access to the real-time trade alerts and ideas. The private twitter feed is one of the BEST TOOLS I offer. It presents my up-to-date opinion on everything we are playing.

$AEZS (AEterna Zentaris Inc.)

This sold off again near the lows and I’m willing to pick it up soon. Many PR catalyst coming up including NDA filing and ASCO abstracts. 1.70 is the 52 week low so I doubt we go lower than that unless we get bad news. 

$ATHX (Athersys Inc.) 

I think I have beat this stock dead so far. Obviously I love the company. There was a negative Seeking Alpha article out last week, and then BioStocksElite posted a rebuttal on Seeking Alpha over the weekend. I still think we are due for a decent pull back, but this has been a nice runner lately. 

$ATRS (Antares Pharma Inc.)

The more I dig into this company, the more I am beginning to like it. It is a rare company that is near profitability as a small cap biotech (which is unheard of). Many think that it is going to be bought out soon, however I do not bet on buy outs. They have a nice base here on 3.50 and I will probably take a starters position for the mid to late year catalyst. I will talk more and more about this company as I see how things are developing. 

$DCTH (Delcath Systems Inc.)

The 5/2/13 AdCom is coming up quick and I got a ton of emails from you guys asking if a run was still possible. I think it will act like $AVEO. In my opinion it will be a chop fest, but if we do get a run it will be RIGHT before and it will be quick. Not worth the risk imo. 

$XNPT (XenoPort Inc.)

One of my biggest positions here and very excited for whats in store this week. We are nearing a technical breakout and the last signal is above the 50 SMA over 7.61. Over that and we explode into the Phase III data results. If you haven’t already, check out my new Seeking Alpha article on it. 

$SRPT (Sarepta Therapeutics Inc.)

Now that we know the FDA is serious about AA, it’s game time. Well, a waiting game, again. I am a long-term investor in this company and will hold my shares through AA. Eventually I can see this company over $90+.

Hope you guys had a great weekend. I have been working on a lot lately and I am proud to announce that I have joined the Leader Investment Club, which is a hedge fund founded by myself and other like minded kids. Visit the website HERE and check out ‘The Team’. Bio-Techs are hot as the market is making new all time highs everyday. There was some Gold/Silver drama over the weekend and they are down BIG. I think some money can flow out of those ETF/Commodities and flood more into equities. Orrrrrrrrr I could be wrong and nothing can happen, but after talking it out with a few other individuals, I have a bullish equities sense for the next week.

NOTE: If you have not been added to the private twitter feed, you must send a ‘follow’ request to @BioStocksMember. Then you must email me (Brett@BioStocks.com) your Biostocks username and twitter username before access is granted. If you fail to do either of these two steps, you will not get access to the real-time trade alerts and ideas. The private twitter feed is one of the BEST TOOLS I offer. It presents my up-to-date opinion on everything we are playing.

With that being said, here are a few of the top picks I have for the next week:

$AEZS (AEterna Zentaris Inc.)

NICE pop on the PR last week. We sold the pop like we should have. They had encouraging updated proof-of-concept results for Disorazol Z cytotoxic conjugates, such as AEZS-125 and AEZS-138, in human ovarian and endometrial cancer xenograft models. Results further showed the compounds’ high potential for the treatment of luteinizing hormone-releasing hormone (“LHRH”) receptor positive tumors. This is decent news, but not really a big deal. Keep it on your watch for a run into the NDA.

$ATHX (Athersys Inc.) 

Another new article out on it HERE.  We are now officially up 100% since we started coverage on it. Congrats guys! I think now that we have hit 2.00 we will pull back a bit before making a move higher. Of course, if they get a partnership then it will spike and that theory goes out the window. I will look for dips to buy. 

$AVEO (AVEO Pharmaceuticals Inc.)

The company’s lead product candidate Tivozanib is a potent, selective, long half-life inhibitor of all three vascular endothelial growth factor (VEGF) receptors that is designed to optimize VEGF blockade while minimizing off-target toxicities. Tivozanib is an oral, once-daily, investigational tyrosine kinase inhibitor for which AVEO has submitted a new drug application (NDA) to the U.S. Food & Drug Administration (FDA) seeking approval for Tivozanib in patients with advanced renal cell carcinoma (RCC). RCC is cancer that starts in the kidneys. About 90 percent of all kidney cancers are renal cell carcinomas. Tivozanib is also being evaluated in other solid tumors including colorectal and breast cancers. They have a 5/2/13 FDA panel and I am expecting a late run into it. High chance of new articles and coverage out in the next 2 weeks

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$CLSN (Celsion Corp.) 

Same as last week. Hopefully we pull down this week or I have to sell at .05. What a freaking headache this stock is giving me. We made some nice gains on our long scalps on the attempted recovery breakout, and now we are falling back down. This company is worth .50-.80 IMO, and I am very surprised it is trading this high since they have basically nothing. All that is keeping this thing up is false hope and pure speculation. This is a perfect example of why I hate playing options on stocks < 3.00 in share price. We have held our puts since above 1.30 and now still sit at break even. I would much rather have shares to short then to have to deal with these puts, but I still think it works out especially since we broke 1.00 on Friday. 

$DCTH (Delcath Systems Inc.)

Still has a chance to run into the 5/2/13 panel, but looking less likely. Major support at 1.50 and 1.45. I wouldn’t want to hold through the panel though. Trade it safe, don’t get greedy.

$OMER (Omeros Corp.)

Still waiting for this to move. Another bottom play that we entered a bit too early on. We broke 4.00 support and I sold my shares for a small loss but kept my calls. Watch 3.90 (52 week low) as an important level, but hopefully we shoot up to 4.50+ soon. It has a 60 mil ATM and 12% short interest, but insane potential. OMS302 peak annual sales could reach $600M if approved. With mkt cap of only $100M, you could see the opportunity here. Wedbush also had a price target of $20.00 —> http://bit.ly/11HMSPN . If you can sit on this one, and the seller gives up, it will pay nicely. 

$SRPT (Sarepta Pharmaceuticals Inc.) 

Ok I’ve been working to find strategies. Here’s what I got so far using $60 as target upside and $20 on target downside for the AA decision. Most scenarios gave me similar r/r and not a single one really sticks out:

1.) Keep 400 shares and short 1 may call. Don’t like this one because I reduce my reward potential more than I would reduce my loss potential.

2.) Long may 40/50 call spread w/ 200 shares. Max reward 7k max loss 3k but unnecessary loss of 1.5k about if we move no where.

3.) Same spread but with long $25 puts as well expecting 18-22 downside risk. Same loss at $25 then we would at $20… But we are protected <$20

4.) The obvious gamble of just selling my shares and rolling some profit into may $43 calls for 4.00 ish and hoping for decision by may.

The best decisions so far are options 2 and 3. I will continue to look for ideas, but the high premiums make it hard to do anything.

Great buy the dip opportunity last week. Look for any other dips since they are still being bought up. 72 week data was great which improves chances of AA. Still believe this is a winner and it is my biggest position. Depending on AA decision I will sell the pop and look to re-enter or 2-3x down on the drop. 

$XNPT (XenoPort Inc.)

I’m working on an in-depth article for this one. There is a free article already on the site. Over 7.40-7.50 triggers a major breakout IMO and will continue to run into Q2. Stay tuned for the article.

Another week, and another opportunity to make some money. We had some decent down side last week, but $SPY held the 154 support level. We are now under the 9EMA on the daily chart, but we need one more candle to confirm the move. With all this choppiness, I wouldn’t be surprised at either play, bullish or bearish. If we close below the EMA again tomorrow (currently at 155.70) then I will take a small short position on any bounce to hedge my biotech positions. I am still being careful since the market has been so confused lately, but stick to confirmations and you should be ok.

NOTE: If you have not been added to the private twitter feed, you must send a ‘follow’ request to @BioStocksMember. Then you must email me (Brett@BioStocks.com) your Biostocks username and twitter username before access is granted. If you fail to do either of these two steps, you will not get access to the real-time trade alerts and ideas. The private twitter feed is one of the BEST TOOLS I offer. It presents my up-to-date opinion on everything we are playing.

$AEZS (AEterna Zentaris Inc.)

Pretty much nothing changed here since this last week. We drifted a bit lower, but mostly recovered the downside. We’ve had a rough time trading this one in the past, but it turned out alright in the end. Now, after a financing and a reverse split, shares sit at 1.88 which is dirt cheap in relativity to the company’s history. Scraping by all time lows this is looking like a chart bottom play. With little value given to what is left of the pipeline, I see a opportunity for a run into the NDA filing that is due soon. We should hear back from the FDA in the next 6-8 weeks regarding the decision, and should give AEZS a very nice pop. Any Seeking Alpha articles or coverage could start a nice run here. 

$ATHX (Athersys Inc.)

Another nice bounce off of the 1.50 support. Great gains AGAIN. Holding 1000 shares as a core. This still has the potential to go MUCH higher. I tweeted DD on it all of Friday morning, so I hope you guys played this bounce. Look for dips to re-enter and sell the pops.

$CLSN (Celsion Corp.)

What a freaking headache this stock is giving me. We made some nice gains on our long scalps on the attempted recovery breakout, and now we are falling back down. This company is worth .50-.80 IMO, and I am very surprised it is trading this high since they have basically nothing. All that is keeping this thing up is false hope and pure speculation. This is a perfect example of why I hate playing options on stocks < 3.00 in share price. We have held our puts since above 1.30 and now still sit at break even. I would much rather have shares to short then to have to deal with these puts, but I still think it works out especially since we broke 1.00 on Friday. 

$MNKD (MannKind Corp)

A technical breakout over 3.50 sent this thing to 3.95, but the run was short-lived. It faded all the way back down to 3.60′s so congrats if you picked up on the 4.00 resistance short. With the 50 M ATM and worlds worst balance sheet, I do not have high hopes for the company, but they might get another run into the upcoming phase III results.

$OMER (Omeros Corp.)

Still waiting for this to move. Another bottom play that we entered a bit too early on. We broke 4.00 support and I sold my shares for a small loss but kept my calls. Watch 3.90 (52 week low) as an important level, but hopefully we shoot up to 4.50+ soon. It has a 60 mil ATM and 12% short interest, but insane potential. OMS302 peak annual sales could reach $600M if approved. With mkt cap of only $100M, you could see the opportunity here. Wedbush also had a price target of $20.00 —> http://bit.ly/11HMSPN . If you can sit on this one, and the seller gives up, it will pay nicely. 

$SRPT (Sarepta Therapeutics Inc.)

Ok I’ve been working to find strategies. Here’s what I got so far using $60 as target upside and $20 on target downside for the AA decision. Most scenarios gave me similar r/r and not a single one really sticks out:

1.) Keep 400 shares and short 1 may call. Don’t like this one because I reduce my reward potential more than I would reduce my loss potential.

2.) Long may 40/50 call spread w/ 200 shares. Max reward 7k max loss 3k but unnecessary loss of 1.5k about if we move no where.

3.) Same spread but with long $25 puts as well expecting 18-22 downside risk. Same loss at $25 then we would at $20… But we are protected <$20

4.) The obvious gamble of just selling my shares and rolling some profit into may $43 calls for 4.00 ish and hoping for decision by may.

The best decisions so far are options 2 and 3. I will continue to look for ideas, but the high premiums make it hard to do anything.

Great buy the dip opportunity last week. Look for any other dips since they are still being bought up. 72 week data was great which improves chances of AA. Still believe this is a winner and it is my biggest position. 

Hope you enjoyed the long weekend, because it’s back to work tomorrow! Another week means another opportunity to make some cashhhh $$$$$. $SPY- We have continued up after the 3/25/13 drop, and are now trending up again. All time highs are still in reach and are still a magnet to pull us upwards. Shorts have been hard to play and require you to take profits fast because they disappear quick in anticipation of rebounds and higher runs. Levels of support in the near term are: 156.20, 155.00, and 154.00. 9 EMA is sitting at 155.73 on the daily chart. Levels of resistance in the near term are: 156.85, 157.00.

$ES_F (/ES)- Levels of support: 1560.00, 1550.00, and 1540.00. 9 EMA sits at 1554.12 on the daily chart. Levels of resistance: 1564.50 (1565.00) and 1570.00.

Market is still more choppy than anything, so be sure to take profits quick, and book gains.

NOTE: If you have not been added to the private twitter feed, you must send a ‘follow’ request to @BioStocksMember. Then you must email me (Brett@BioStocks.com) your Biostocks username and twitter username before access is granted. If you fail to do either of these two steps, you will not get access to the real-time trade alerts and ideas. The private twitter feed is one of the BEST TOOLS I offer. It presents my up-to-date opinion on everything we are playing.

NOTE: I’ve officially committed to LMU (Loyola Marymount University) and will be studying business/finance there. Very excited.

Now here is this weeks watch list:

$AEZS (AEterna Zentaris Inc.)

Oh how much I have NOT missed this company. We’ve had a rough time trading this one in the past, but it turned out alright in the end. Now, after a financing and a reverse split, shares sit at 1.88 which is dirt cheap in relativity to the company’s history. Scraping by all time lows this is looking like a chart bottom play. With little value given to what is left of the pipeline, I see a oppertunity for a run into the NDA filing that is due soon. We should hear back from the FDA in the next 6-8 weeks regarding the decision, and should give AEZS a very nice pop. Any Seeking Alpha articles or coverage could start a nice run here. 

$ATHX (Athersys Inc.)

What a rip off of 1.50 support. Huge gains for you guys. I’m going to look into getting back in around 1.60, or 1.50 if we bleed in the macro market. All the DD you could ever want is located HERE. 

$CHTP (Chelsea Therapeutics International Ltd.)

We broke over that 2.00 resistance on a seeking alpha article, but couldn’t hold as that DAMN SELLER still pushed us back down. This is a very frustrating stock to trade, but if I can get a cheap core again, I think it will be a great runner to 3.00.

$OMER (Omeros Corp.)

Another bottom play that we entered a bit too early on. We broke 4.00 support and I sold my shares for a small loss but kept my calls. Watch 3.90 (52 week low) as an important level, but hopefully we shoot up to 4.50+ soon. It has a 60 mil ATM and 12% short interest, but insane potential. OMS302 peak annual sales could reach $600M if approved. With mkt cap of only $100M, you could see the opportunity here. Wedbush also had a price target of $20.00 —> http://bit.ly/11HMSPN . If you can sit on this one, and the seller gives up, it will pay nicely. 

$SRPT (Sarepta Pharmaceuticals Inc.)

Ok I’ve been working to find strategies. Here’s what I got so far using $60 as target upside and $20 on target downside for the AA decision. Most scenarios gave me similar r/r and not a single one really sticks out:

1.) Keep 400 shares and short 1 may call. Don’t like this one because I reduce my reward potential more than I would reduce my loss potential.

2.) Long may 40/50 call spread w/ 200 shares. Max reward 7k max loss 3k but unnecessary loss of 1.5k about if we move no where.

3.) Same spread but with long $25 puts as well expecting 18-22 downside risk. Same loss at $25 then we would at $20… But we are protected <$20

4.) The obvious gamble of just selling my shares and rolling some profit into may $43 calls for 4.00 ish and hoping for decision by may.

The best decisions so far are options 2 and 3. I will continue to look for ideas, but the high premiums make it hard to do anything. 

$XNPT (XenoPort Inc.)

7.00 is the major support here. Surprised at the severity of this pull back/selling. It is low float so it isn’t hard to move this one, and we should see a decent recover. Q2 catalyst is huge for them and should bring a ton of attention especially after the recently great data runs like $TSRX. Detailed article on our site HERE.

Chop Chop Chop!!

I emphasize this because that’s all this market is right now. A chop fest, and let me tell you, chop fests aren’t fun. With no direction, it is hard to position yourself either short or long. I am still kinda long biased because of the magnet towards all time highs, but I am obviously bearish on the over-extended and non-fundimental backed run we have had. THE MARKET CAN NOT RUN ON THIS SUGAR HIGH FOREVER, BUT DO NOT TRY TO CALL A TOP.

Anyways, spring break is now over

So back to school, back to school for me. Light trading for me until we can pick a direction here.

Note: I got accepted into Loyola Marymount University (LMU) and am waiting to hear back from USC. Cross your fingers!

NOTE: If you have not been added to the private twitter feed, you must send a ‘follow’ request to @BioStocksMember. Then you must email me (Brett@BioStocks.com) your Biostocks username and twitter username before access is granted. If you fail to do either of these two steps, you will not get access to the real-time trade alerts and ideas. The private twitter feed is one of the BEST TOOLS I offer. It presents my up-to-date opinion on everything we are playing.

$ATHX (Athersys Inc.)

Back to our old friend here. It’s been awhile, but I’m sure you all remember the MONSTER gains from this one. Recall the seeking alpha article that I wrote on it for some background information. I have a friend who submitted another seeking alpha article on it this weekend, and I am sure you guys will love the DD provided on it. If accepted, it should be available tomorrow. I picked up shares on this 1.50 support bounce. If this fails, it looks like its last chance is 1.40′s.. under that and it could get ugly. However, I doubt we even break 1.50 especially with this increased attention from the article. Trade is well, this is a good one.

$CLSN (Celsion Corp.)

What a freaking headache this stock is giving me. We made some nice gains on our long scalps on the attempted recovery breakout, and now we are falling back down. This company is worth .50-.80 IMO, and I am very surprised it is trading this high since they have basically nothing. All that is keeping this thing up is false hope and pure speculation. This is a perfect example of why I hate playing options on stocks < 3.00 in share price. We have held our puts since above 1.30 and now still sit at break even. I would much rather have shares to short then to have to deal with these puts, but I still think it works out. 

$DCTH (Delcath Systems Inc.) 

“We are very appreciative of the FDA’s interest in our NDA and the progress made to date towards our June 15^th 2013 PDUFA goal date,” said Eamonn P. Hobbs, President & CEO of Delcath Systems.  “Assuming our NDA is approved, we believe our decision to focus the initial labeling of our proprietary chemosaturation system on ocular melanoma, where there is a significant unmet medical need, will have little impact on the Chemosaturation system’s revenue potential in the U.S., where physicians typically prescribe cancer treatment options based on clinical data and medical professional experience.

“We plan to initiate clinical studies in 2013 to study the use of our chemosaturation system in other tumor types that potentially represent significant commercial opportunities beyond the ocular metastatic melanoma market.  Currently, we intend to pursue studies to support label expansion for the use of our system to treat hepatocellular carcinoma and neuroendrocrine cancer patients, and depending on feedback from the FDA could potentially enroll our first patients before the end of 2013.”

Pretty much all you need to know is that they have a 6/15/13 PDUFA and 5/2/13 Adcom. We booked some nice gains already as the hype started building and we took off our position. Looks like we are still dipping, but I might get in small again soon. What is holding me back from a re-entry is the new offering they announced during the earnings report.

$MNKD (MannKind Corp.)

Nice little run finally coming to an end. Going to continue shorting the pops and cover on the washouts. One of the worst balance sheets on earth + chart breakdown = $$$ on a good short. Might cover half above 3.43 and look for re-entry.

$XNPT (XenoPort Inc.) 

7.00 is the major support here. Suprised at the severity of this pull back/selling. It is low float so it isn’t hard to move this one, and we should see a decent recover. Q2 catalyst is huge for them and should bring a ton of attention especially after the recently great data runs like $TSRX. Detailed article on our site HERE.