|SoTM Bull's Eye Report - Today's Most Compelling Buy |
Wednesday, June 19, 2013
At StateoftheMarkets.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.
| Pharmacyclics Inc ||PCYC || Biotechnology || 9.3 || +52.75% || $82.56 |
Why We Like The Stock:
Pharmacyclics Inc (PCYC) 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) with a positive technical set-up. Biotechnology stocks haven't had a great month in June, as evidenced by the chart of the SPDR S&P Biotech ETF (XBI). However, Biotech is still one of our top-rated sub-industries, and has a lot of good trading opportunities if you look closely. Pharmacyclics (PCYC) has been on our radar for some time. Twice this year it has flirted near $95, most recently on June 3 (highs of $93.76). Despite a series of sizable pullbacks, the stock is firmly entrenched in a long- and intermediate-term uptrend, and is already up over 50% on the year. Though PCYC is volatile, it has been making higher highs and higher lows since mid-April. At current prices, PCYC presents a good entry point and looks poised to make a run back to the $95 area. We wouldn't hold the stock if it crosses back below the 50-day moving average at $82.56, but we'd be willing to take a shot here.
|We Would Be Buyers: |
At the current price (~$86.75).
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|Company Profile: |
Pharmacyclics, Inc. is a clinical-stage biopharmaceutical company focused on developing and commercializing small-molecule drugs for the treatment of cancer and immune mediated diseases. The Company's clinical development and product candidates are small-molecule enzyme inhibitors designed to target biochemical pathways involved in human diseases. As of June 30, 2011, it had three drug candidates under clinical development and a number of preclinical lead molecules. This includes an inhibitor of Bruton’s tyrosine kinase (Btk) (PCI-32765) in Phase II studies in hematologic malignancies; a Btk inhibitor lead optimization program targeting autoimmune indications, an inhibitor of Factor VIIa (PCI-27483) in a Phase II clinical trial in pancreatic cancer, and a histone deacetylase (HDAC) inhibitor (PCI-24781) in Phase I and II clinical trials in solid tumors and hematological malignancies as of June 30, 2012.
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.
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.
Pharmacyclics Inc - Last 3 Months
Pharmacyclics Inc - Last 12 Months
Pharmacyclics Inc - Last 5 Years
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