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JimVanMeerten (62.86)

Cancer Pharma is big

Recs

1

April 05, 2011 – Comments (0) | RELATED TICKERS: ARIA

There seems to be no bigger concern in the US, Europe and Japan than cancer.  Araid Pharmaceuticals (ARIA) seems to be uniquely positioned to profit from that concern.  The company came under my view while screening on Barchart for companies under $10 a share that have been hitting the most frequent new highs.  The price momentum alone is reason to watch this one.

Ariad Pharmaceuticals (ARIA) is engaged in the discovery and development of novel pharmaceuticals based on intracellular signaling technology. The Company has established highly integrated capabilities in functional genomics, molecular cell biology, structure based drug design, combinatorial chemistry and pharmacology. The company is developing small-molecule drugs that block signal transduction pathways in cells responsible for osteoporosis, and immune and inflammatory diseases.

The factors you need to know before considering this stock are:


Technical Factors:

1 - 96% Barchart technical buy signals

2 - Trend Spotter buy signal

3 - 13 new highs and up 39.66% in the last month

4 - Relative Strength Index 82.42% and rising

5 - Trades around 8.27 with a 50 day moving average of 6.40

Fundamental Factors:

1 - The company is in a turn-around after some poor current numbers

2 - Wall Street brokerage analysts have 6 strong buy, 2 buy and 1 hold recommendations published

3 - Sales are expected to increase by 84.80% next year

4 - Earnings are expected to increase by 34.00% next year and 10.00% annually for the next 5 years

General Investor

1 - Sentiment:On Motley Fool there is a positive opinion of this company

2 - CAPS members vote 273 to 36 that the stock will out perform the market

3 - The more experienced All Stars agree 72 to 16

If you're looking to balance your portfolio with a smaller pharma stock this might be a good one to consider.


Jim Van Meerten is an analyst for  Marketocracy Capital Management.  He shares his knowledge and experience from over 40 years of investing in stocks, mutual funds and ETFs onBarchart.com  in his daily blog -- Barchart Portfolio Blogs.

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