Tuesday, February 07, 2006

ALNY & RNAI

Yesterday, in his Comment to Ilene about CYTR, Greg Reiman posted the text of a letter he got touting a $5,000/yr newsletter. The pitch promised to give new subscribers access to the newsletter's February 27, 2006 conference call in which they would name two new stock picks in the area of RNA Interference, one of the newest and hottest areas of Biotechnology. Here is the how Greg's Comment begins:

Greg Reiman said...
Hi Ilene:

Here is a pitch (long and heavy on hype) I received to subscribe to a very expensive newsletter, which I am not going to subscribe to.

Never the less, the discussion about RNA Interference threapies is pertinant to our previous discussion. I thought you might find it of interest and possible even sniff out the companies they allude to, but do not name.


Ilene recognized one of the stocks that the writer was describing, but not naming, Alnylam Pharmaceuticals (ALNY), a stock Ilene already owns and regards highly. We decided that if we could identify the second of two stocks being hyped in that solicitation letter, we'd post a new blog today and share our discovery.

But it's not just that we figured out that the two stocks were ALNY and Sirna Therapeutics (RNAI), it's that we also like both of these companies. They both are exciting participants in a new wave of biotechnolgy research and development called RNA Interference, both have strong managements, stellar balance sheets, solid science and savvy institutional holders and partners.

The play here is two-fold,

(1) That the newsletter pumping of the two stocks, if we got them right, will result in pops either on February 27-8 coincident with the supposed conference call to subscribers, or more subtle strength in the two stocks leading up to the 27th as resourceful people uncover the stocks they are talking about;

(2) Continued strength in the biotechnology sector in general that spills over into ALNY and RNAI.

There you have it, two new names and stocks to think about and maybe act upon along with some reasoning and detective work all fluttering about, like fireflies trading in the dark.

A

6 comments:

Greg Reiman said...

Hi A & I:

Very nice detective work. Thanks! I guess I owe you the $5000 ;-) How about I pay you out of the profits I make on these two stocks.

I also like Allan's thinking about how the Feb 27 pump by this newsletter may goose the price short term.

Greg

Anonymous said...

Allan,

I've been following the XDSL stock, and actually have a chance to talk to the infamous Jim Cramer on his Mad money show this evening. Is this a smart play being that I have shares of the co. already?

Allan said...

Good question, I suspect whatever he says will result in a very short term pop one way or another, so it probably shouldn't be acted upon. Whily your are on hold for his show, how about posting here whatever stocks he is pumping this afternoon?

A

Anonymous said...

A.

Sure thing.

Greg Reiman said...

Hi A & I:

I bought CYTR, ALNY, & RNAI yesterday. I put on pretty tight stop limit sell orders to protect on the downside, and got stopped out of ALNY later the same day. I have a new bracketed buy limit order in to get back into ALNY either at a lower price or it it breaks out. Both CYTR and RNAI were up 6+% today which is a nice pop if I were day trading it, which I was not, still holding.

Thanks again for sharing your research.

Greg

Greg Reiman said...

HI A & I

ALNY had a big opening gap up today. Hit a high of $15.39. Up 8% so far today.

Hunt little doggie hunt!!!!

Wooo Hooo!!!!!

Greg