Considering additional purchases

Posted on December 8, 2005 , filed under Stocks | Print This Post

This afternoon, I am looking at a few different stocks to buy in December.

For pharmaceutical and biotech companies, I like BIIB, Biogen Idec, Inc. BIIB and ELN, Elan Corporation, plc, have been caught in a struggle over the status of Tysabri. The promising Multiple Sclerosis drug, was removed from the market after complications were discovered in a small percentage of patients administered the medication. On November 17th, 2005, The FDA granted ELN, Elan Corporation, plc a priority review of Tysabri. The results are expected to be announced in 6 months instead of the normal 10 months it takes for an FDA review. As we get closer to the results I expect ELN and BIIB to jump up as investors speculate over a positive response from the FDA. If the FDA review produces an unfavorable response for Tysabri, I expect BIIB to drop another 15-20% from today’s prices. I expect the price of ELN to drop 80% or more. Biogen has more protection against an unfavorable response since the company has other products in its pipeline. Tysabri is Elan’s primary catalyst in revenue. I like BIIB around $41-$42. I may purchase shares of BIIB if the stock trades in that range.

For gold I like AUY, Yamana Gold, Inc. The company engages in the acquisition, exploration, and development and operation of mineral properties in Brazil and Argentina. Production and 3rd quarter revenue looks good. If gold can maintain levels above $500 going into 2006, which I believe it can, AUY should continue its rise. I expect to see AUY in the $7-$8 if production stays on track and the company can produce its estimated 400,000 OZ target in 2006. I like AUY at low $5’s or just under $5.

If I purchase shares of either BIIB or AUY I will post a detailed analysis.

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