We prefer to remind ourselves tonight why we DON'T play the biotech/pharma game instead of taking out the poms-poms for DJIM. Of course the gains can be tremendous as we saw by the first alert trades in VNDA..$21 to $22, that's about 35-40% from yesterdays close. But... what if we play this game of Russian roulette and we wake to a drop of the same size because of poor results and then we go lower and lower before the bell. One thing we recognized recently and mentioned last week is VNDA has the capabilities of getting MOMO as seen in November. We didn't expect a release, just a breakout from this tight range as the stock was acting funky lately, yesterdays close showed some hidden promise...This (momo) was clear and center in our minds as the stock gapped to $21, 35-40% was nothing for this stock, we knew it was capable of doing much more and the first thing we did was probably add 10X the size we already held. The gains off those morning trades made the pick ups at $15+ a backdrop as the stock traded $28+ and another 35% off the first trades this premarket. The point is simple, we have never seen the risk in playing these worthwhile and tying up cash...waiting and waiting for some trial news. At the end it comes down to what you do after the 'news', not before!. We doubt this will turn into anything close to the ACOR we played here, but there will probably be a leg here or there to jump on as this stock gets discovered. Right now, it might become more of a Pharma acquisition play. Many big Pharma are losing sleep and going a little schizo these days, VNDA could be their cure.
While the DJIM China stocks rest, their comrades the Russian telcos seem to be acting just fine. MBT, VIP, ROS and led by GLDN showed strength in a lacklustre market. GLDN, the volatile of the bunch continued yesterdays bolt to new highs, volume has been excellent the last two days. ROS is the crawler in the family, we alerted under $38 and today finished 39.69. Nice chart if you have a second to spare. MBT and VIP seem like they don't want to consolidate for too long and instead make a run for the recent highs. As market deteriorated after 2pm, these seemed to hold and even pick it up throughout the day. We'll see tomorrow.
So our DJIM day started at 7:30am with VNDA and was still ticking at 6:00pm with a Cramer tick on DLB with a $30+..Guess the man got the alerts this week;). We would have preferred to let this play out on DJIM time but we won't be afraid to take some early profits if its called for tomorrow. Stay on your toes tomorrow for the market, don't give up what you've earned.