Doctor's orders - Take Biogen
Biogen Idec -- BIIB is being added to my Marketocracy S&P 500 model portfolio. IDEC Pharmaceuticals Corporation is a biopharmaceutical company engaged primarily in the research, development and commercialization of targeted therapies for the treatment of cancer and autoimmune and inflammatory diseases. Their first commercial product, Rituxan, and our most advanced product candidate, ZEVALIN, are for use in the treatment of certain B-cellnon-Hodgkin's lymphomas. They are also developing products for the treatment of various autoimmune diseases (such as psoriasis, rheumatoidarthritis and lupus).
I screened for S&P 500 stocks showing the highest relative strength on Barchart and then used my normal elimination procedures. Biogen was on the short list. The stock has had 13 new days of price appreciation in the last 20 sessions and was 3 for 5 recently. 11 of Barchart's technical indicators rate the stock a buy for an 80% technical buy rating.
There are 20 brokerage firms following the company with no recent sell recommendations. 7 have buy recommendations on the stock.
On other sites Wall Street Survivor has a 5/5 sentiment rating with a 4/5 fundamental rating and a 5/5 technical rating. Motley Fool Caps members feel the stock will outperform the market by a vote of 622 to 45 with the All Stars in agreement 204 to 9 and the Wall Street columnists Fool follows are voting 10 to 3.
This stock has met my criteria:
1 - Hitting new highs better than 50% of recent days
2 - Following by Wall Street with no trash talking
3 - Others sites agree with my screening.
I'm adding Biogen Idec -- BIIB to my Marketocracy S&P 500 model portfolio around 53.75 with a protective stop loss of not less than 50. Remember to keep stop losses tight on pharmas. One bad press release can tank them over night.
Jim Van Meerten is an investor who writes on financial matters here and on Financial Tides. Please leave a comment below or email JimVanMeerten@gmail.com
Disclosure: No positions in BIIB at the time of publication