Things are starting to heat up again as the SPY recovered to a high of $140.79 on Friday. There are still a TON of cheap bios that have been beaten down recently that I expect bounce pretty nicely. There is also two PDUFA’s this week, PLX (5/1/12) and ALXA (5/4/12). I have been waiting a long time to play these and they both have the potential to allow massive gains. Here are the main plays for this week:
DCTH (Dethcath Systems Inc.)
This is one of the most oversold bio-techs right now due to the overall market weakness. I will be looking to add shares on any dips for a rebound back or above the $3.00 range. Playing it mostly for swing trades on market order dumps.
KERX (Keryx Biopharmaceuticals Inc.)
Last week KERX received positive results for Zerenex in Japan. I was long and sold my position on the spike up. I reentered on Friday with 1000 shares at 1.52 for another rebound with this good news. There is insider buying in this range as well. I fully expect it to push over $1.60 at least by Tuesday with a decent SPY.
PLX (Protalix BioTherapeutics Inc.)
The long-awaited PDUFA date for PLX is on Tuesday (5/1/12) and I have no position other than my 5, 7.5, 10 Butterfly. If it does get approved, I will be shorting and buying puts because I believe it will run-down fairly hard. If you haven’t checked out the Video Gameplan HERE is the link. With a near $600 Million market cap, I believe that approval is mostly priced in. There is no near term catalysts for anything else in their pipeline, and it is looking like it will pull back to the $6.00 range post-approval.
ALXA (Alexza Pharmaceuticals Inc.)
Another long-awaited PDUFA is ALXA. Their PDUFA is on Friday (5/4/12) and if it receives approval, it will spike very hard. It received a mixed Adcom vote and the decisions is very risky. I will be looking to liquidate my long positions this week to limit risk in case of an early decision. On an approval I will be shorting and possibly buying $1.00 put options.
CHTP (Chelsea Therapeutics International)
I will be buying this every time it dips down to the 2.01-2.03 range. With Martin Shkreli (hedge fund manager) in it very big, I don’t think he will let it fall any lower. It seems to have fallen in a channel of bouncing off this level, and it makes it very easy to swing.