Vanda Pharmaceutical, VNDA $22 premkt

December 1st in DJIM alerts at $15

Vanda Pharma announces it confirms Iloperidone efficacy with positive Phase III clinical trial results in Schizophrenia (VNDA) 15.50 :Co announced positive top-line results from the co's Phase III clinical trial evaluating iloperidone, an atypical antipsychotic, in patients with schizophrenia. Iloperidone demonstrated statistically significant improvement compared to placebo on the Positive and Negative Symptom Scale, the trial's primary endpoint. Additionally, iloperidone achieved significant efficacy on the positive and negative symptom subscales of PANSS. The safety profile was consistent with what has been observed in previous iloperidone Phase III trials. "We are extremely pleased to have achieved this outcome with iloperidone. The success of this trial moves us one step closer to our NDA filing, expected in late 2007, and one step closer to making iloperidone available to patients and providers dealing with schizophrenia."

A long DJIM trading day!......VNDA>>DLB

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.

DJIM hold/hit list #17

No denying last week DJIM concentration of stocks outperformed the indecies once again. By mid-week the major indecies ran into some resistance from the rally that began the previous Friday, this is clearly seen in yesterdays charts on DJIM Journal. You can also see the market rise early last week was met with some profit taking on the Nasdaq as the money flow diverged.  What also diverged was the action of the DJIM stocks as many closed with NCH(new closing highs), some were mild but still NCH's by fridays close while the market did little to add on gains late.  These include ALY, BTJ, DLB, JST, HMIN, ZOLL, EDU and a nice tick off the 9ema on MR.  Last weekends DJIM #16 concentrated on the 3 segments we have been riding the uptrend with...China/Asian stocks, Russian telcos and the baby oils and of course the always ready to go,  GROW.  

Interestingly, the baby oils services continued to roll on Friday after the oil sector reversed around noon and oil went from the mid 63's to low 62's, but did not take ALY, BTJ with it.  ALY tacked on about 15% and BTJ another 6% on the week.  

Besides GROW's seemingly fast and climatic rise from 50 to $60's, it managed to create the usual buying opp on the dip as witnessed Friday. We have stated, GROW is in trader territory more than ever and you need to be on constant watch at these prices or at least have buy in dip points in place for another possible trade and push up.  The Asian stocks continued their march with MR, EDU, HMIN up 8% on the week, we cannot forget the cheaper JST which provided a 20% trip with a few bumps in between. The other group we have built around is the Russian telcos which we jumped all over at MBT's earnings.  VIP started the week at $76 and climbed to high $81's and now has been basing with MBT in the backseat.  GLDN tacked on about 3 points and ROS continued its steady crawl.  As always, we look for new opportunities to sandwich in between the heavily followedDJIM stocks in good and bad market days. 

Also this week, we again introduced AXR off earnings and a quick trip from 98-107, BIDU is another one we are trading right now.   Unfortunately, many still think a $100+ stock is not capable of producing nice quick returns and prefer to buy the speculative MAMA's that wear army boots.  

For many all the action in the 3 segments might have been irrelevant if they caught the VNDA moon shot. After mentions December 1st and 4th in DJIM alerts, we and many of you early risers caught the morning alert at $21 -22.  If not maybe some of you were accumulating some with us in the $15's.  This launch was enough for many to call it a week, some a month if you are confident in DJIM words that this was capable of catching the MOMO and jumped at the opp to load up pre market.  We enter week #17 with the same cast, holding many, ready to hit on and add to others..(eg. russan basing telcos like VIP, MBT) as many DJIM's finished the week at or near NCH's, which could be a passport to further gains if the market does not a pull one over eyes early on. 

The only recent DJIM names we are ignoring for the most part is the tech names which have shown distribution with the rest of the Nasdaq..RVBD, DIVX.  

If the Grinch takes a peek and starts up, we will gladly sell some of these top performing DJIM names and take the profits to buy new and bigger toys on the market before the year is up!.  We're not finished yet!   We hope after 16 weeks here, many of our new readers are seeing the joy and potential of trading stocks with a earnings base under them...90% of the stocks we have put up on DJIM that have produced great returns are just that...quality, growth producing companies.  If you are longer term investor, doing some DD on the stocks discussed here and buying months ago could have made your year without calling your FA or pressing the sell button ONCE yourself......BTJ,ALY,MR,EDU, AMIE, TRT, RIMM and so on.  There's a little of everything here to suit a variety of investing needs.