This post was published earlier on ZYX Buy Change Alert
Last year Human Genome Sciences Inc. (HGSI) successfully introduced the first new treatment for Lupus in a very long time. GlaxoSmithKline (GSK), the big drug giant, is Human Genome’s partner.
Human Genome has disclosed that it received an unsolicited $13.00 per share cash offer from GlaxoSmithKline.
It is likely that the deal will ultimately get done at a premium to the present bid of $13.00 per share.
Buy zone is $12.50 to $13.56. To control risk consider not exceeding 20% of full core position size. Stop zone is$11.48 to $11.75. Target zone is $16 to $18.
Caution: Consider not chasing the price even at the risk of missing the trade. Further it is important to keep the position small because of the risk involved. There is no guarantee that a deal will done.