Biopharma R&D pays off
I added PDL Biopharma (PDLI) to the Barchart Van Meerten Specualtive portfolio --Protein Design Labs Inc. is a biopharmaceutical company focused on the research, development and commercialization of novel therapies for inflammation and autoimmune diseases, acute cardiac conditions and cancer. PDL markets several biopharmaceutical products in the United States through its hospital sales force and wholly-owned subsidiary, ESP Pharma, Inc. As a leader in the development of humanized antibodies, PDL has licensed its patents to numerous pharmaceutical and biotechnology companies, some of which are now paying royalties on net sales of licensed products.
Recent price momentum has given the stock a 100% Barchart technical buy signal -- With 16 new highs and an 11.80% price appreciation in the last 20 sessions the stock looks great. The Relative Strength Index is 74.94% and rising. The stock trades around 6.31 which is above its 50 day moving average of 5.66.
Wall Street analysts look for sales to increase by 12.50% next year with earnings per share increasing by 37.40% for the same period. The 5 year projected EPS annual growth rate of 26.00% has resulted in 2 buy and 5 hold recommendations for their clients.
The Fools on Motley Fool have the CAPS members voting 807 to 34 that the stock will beat the market with the more experienced All Stars voting 301 to 9. Fool notes that the last 6 articles in Wall Street periodicals have all been positive.
The stock was added because:
1 - 100% Barchart technical buy signal
2 - 16 new highs and up 11.80% in the last month
3 - Wall Street brokerages\project double digit increases in sales and earnings
4 - Positive investor sentiment
Jim Van Meerten is an advisor to Marketocracy Capital Management who uses his model portfolios not only to manage their mutual funds but also their clients Separately Managed Accounts. You can read his blogs about those model portfolios and investing here and on Barchart Portfolio Blogs. Please leave a comment below or emailJimVanMeerten@gmail.com.
Disclosure: Jim Van Meerten through Marketocracy Capital Management has an interest in the stocks mentioned in this blog.