Isis Pharmaceuticals Inc (ISIS): Today's Most Compelling Stock Buy

By
A A A


 

SoTM Bull's Eye Report - Today's Most Compelling Buy
Friday, May 17, 2013

At StatoftheMarkets.com, we strive to "own the best and ignore the rest" in our equity portfolios. Toward this end, each day we search our database for a "top stock" (a top rated company in terms of earnings strength as well as company and industry performance) that presents a strong technical "set up" and a good entry point.

In short, when our equity team is looking to add a stock to one of our portfolios, the "bull's eye" stock shown below is generally their first choice.



Company


Symbol


Industry

Stock
Rating

YTD
% Gain
S.T.
Stop
Loss
Isis Pharmaceuticals Inc ISIS Biotechnology 9.9 +75.79% $19.20

Why We Like The Stock:

Isis Pharmaceuticals Inc (ISIS) is our most compelling buy today due to the fact that it is a top rated stock (in terms of earnings strength and company/industry performance) in our top-rated sub-industry, Biotechnology. It's no secret that Biotech has been outperforming this year, as a quick glance at the SPDR Biotech ETF (XBI) chart shows just how explosive this sub-industry can be. ISIS has already gained a ton this year (+75.79%), but some of that is attributed to it being much more volatile when starting the year off at only ~$10 per share. Despite this huge return in 2013, this Biotech stock actually has a pretty high immediate upside for a short-term trade. In early May, ISIS hit $23.03 before pulling back down to its 50-day moving average. It has since quickly rebounded and is now crossing above its short-term moving averages. A run back to $23.03 would mean a +12.56% gain, and it wouldn't take anything out of the ordinary for this chart to move back to those levels. We've liked Biotech all year, and ISIS seems like a good chance to make a quick double digit gain if you pick it up at current prices.
We Would Be Buyers:

At the current price (~$20.60) or at any price above the 50-day moving average ($19.20).

Looking to trade the Bull's Eye stock picks? Click here to download our free Special Report, "How We Identify Our “Bull’s Eye” Picks & How You Can Profit Trading Them"
Company Profile:

Isis Pharmaceuticals, Inc. (Isis), incorporated in January 10, 1989, is engaged in antisense technology, exploiting a drug discovery platform to create a pipeline of drugs. As of December 31, 2011, the Company operates in the Drug Discovery and Development operations segments. The Drug Discovery and Development operations help the Company to identify drugs, providing a wealth of potential targets to treat a range of diseases. As of December 31, 2011, the Company had two generation 2.5 drugs in development, ISIS-STAT3Rx and ISIS-FVIIRx. During the year ended December 31, 2011, the Company had 26 drugs in development. Its partners are licensed to develop, with the Company’s support, 10 of these 26 drugs. As of December 31, 2011, the Company owns 20% interests in Santaris Pharma A/S, Achaogen Inc., and Atlantic Pharmaceuticals Limited, which are privately-held, and Antisense Therapeutics Limitet (ATL), and iCo Therapeutics Inc., which are publicly utilities.

Stock Rating:

The Stock Rating indicates the combined score of our proprietary Earning Strength and Company Performance models. The rating scale is 0 - 10 with 10 being the highest.

Disclosure:

At the time of publication the editor and affiliated companies own the following positions: None

Note: Positions may be bought or sold while this publication is in circulation without notice.

  Isis Pharmaceuticals Inc - Last 3 Months

  Isis Pharmaceuticals Inc - Last 12 Months

  Isis Pharmaceuticals Inc - Last 5 Years

 

 

The analysis and information in this report and on our website is for informational purposes only. No part of the material presented in this report or on our websites is intended as an investment recommendation or investment advice. Neither the information nor any opinion expressed nor any Portfolio constitutes a solicitation to purchase or sell securities or any investment program. The opinions and forecasts expressed are those of the editors of StateoftheMarkets.com and may not actually come to pass. The opinions and viewpoints regarding the future of the markets should not be construed as recommendations of any specific security nor specific investment advice. Stocks should always consult an investment professional before making any investment.

Any investment decisions must in all cases be made by the reader or by his or her investment adviser. Do NOT ever purchase any security without doing sufficient research. There is no guarantee that the investment objectives outlined will actually come to pass. All opinions expressed herein are subject to change without notice. Neither the editor, employees, nor any of their affiliates shall have any liability for any loss sustained by anyone who has relied on the information provided.

The analysis provided is based on both technical and fundamental research and is provided 'as is' without warranty of any kind, either expressed or implied. Although the information contained is derived from sources which are believed to be reliable, they cannot be guaranteed.

The information contained in our websites and StateoftheMarkets.com publications is provided by Ridge Publishing Co. Inc. (Ridge). One of the principals of Ridge, Mr. David Moenning, is also President and majority shareholder of Heritage Capital Management, Inc. (HCM) a Chicago-based money management firm. HCM is registered as an investment adviser. HCM also serves as a sub-advisor to other investment advisory firms. Ridge is a publisher and has not registered as an investment adviser. Neither HCM nor Ridge is registered as a broker-dealer.

Employees and affiliates of HCM and Ridge may at times have positions in the securities referred to and may make purchases or sales of these securities while publications are in circulation. Editors will indicate whether they or HCM has a position in stocks or other securities mentioned in any publication. The disclosures will be accurate as of the time of publication and may change thereafter without notice.

Index returns are price only and do not include the reinvestment of dividends. The S&P 500 is a stock market index containing the stocks of 500 large-cap corporations, most of which are US companies. The index is the most notable of the many indices owned and maintained by Standard & Poor's, a division of McGraw-Hill. S&P 500 is used in reference not only to the index but also to the 500 companies that have their common stock included in the index.

Investments in equities carry an inherent element of risk including the potential for significant loss of principal. Past performance is not an indication of future results.



The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of The NASDAQ OMX Group, Inc.



This article appears in: Investing , Investing Ideas , Technology

Referenced Stocks: ISIS

David Moenning


More from David Moenning:

Related Videos

Stocks

Referenced

Most Active by Volume

55,414,702
  • $15.38 ▼ 0.39%
38,503,210
  • $66.34 ▲ 2.26%
36,466,704
  • $8.36 ▼ 9.52%
35,253,294
  • $26.55 ▲ 1.34%
32,752,347
  • $6.55 ▲ 1.87%
31,778,001
  • $95.22 ▲ 0.19%
28,396,556
  • $51.49 ▼ 0.62%
23,800,987
  • $42.09 ▲ 0.97%
As of 7/11/2014, 04:03 PM