Aryx Therapeutics (ARYX)

1) zzlh's insight on the pipeline

2) 14 day RSI creeping above 50 just now

3) Insider confidence in purchases late in 08

4) general consensus.

About a month ago, I made the declaration that I will not make any more biotech red thumb picks. The problem is that the very nature of the sector lends itself to constant speculation and smooth-talking companies with no real prospects can sweet talk investors for years before the market finally realizes they are worthless.

So now I'm convinced that the only way to make money in biotech is playing things on the long end. Only problem is that picking the winners is much more difficult than picking the losers. Also, consider the fact that I have no medical background and I am obviously not the best judge of these things.

I like what I've read about ARYX and believe they have some positive catalysts. The zzlangerhans green thumb pitch has also helped sway me. I have no confidence in my ability to pick biotech stocks, though, so take everything I say with a grain of salt.