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...
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.