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NEW IDEA ON HUMAN GENOME SCIENCES INC. (HGSI)

April 19, 2012

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

OPPORTUNITY IN BANCO SANTANDER TO ADD OR INITIATE A NEW POSITION

April 18, 2012

This post was published earlier on ZYX Buy Change Alert. Banco Santander (STD) is one of the largest Spanish banks. Spain is clearly in trouble. What is often missed about STD is that it has significant operations outside of Spain. The company is among the top 15 financial institutions in the world. Take a look at the chart that shows lending by country. Here is a breakdown of over 100 million commercial customers by country. The map shows breakdown by region of the bank’s profits. Any time a majority of investors miss the big picture, it represents

APPLE COOKING UP SAMSUNG SETTLEMENT BENEFITS BOTH

April 18, 2012

U.S. District Court Judge Lucy Koh has ordered a settlement conference between Apple (AAPL) and Samsung (SSNGY). The settlement conference will be moderated by a magistrate judge. Both Apple and Samsung have agreed that their chief executives and general counsels will participate. Here is the order from Judge Koh: “The parties have indicated that they are willing to participate in a Magistrate Judge Settlement Conference (‘MJSC’). ECF No. 873. Therefore, the parties are hereby referred to an MJSC with Magistrate Judge Joseph Spero with a 90-day deadline. As the parties have indicated in their joint statement, the chief executive officer

GOLD AT MAJOR SUPPORT

April 18, 2012

This post was published earlier on ZYX Short Sell Change Alert. The resent action in gold has established a major support at $1636 to $1641. 20% of the full core position size is being held in GLD. Will gold break the support or bounce from here? The answer depends on how the Spanish bond auction will go tomorrow morning. If the auction goes well, expect a break of the support. The next support level is $1590 to $1600. If the auction goes poorly, expect a bounce to $1720 to $1730. The way we recommend handling this uncertainty is to maintain

Six Points For Buffett’s Investors To Ponder

April 18, 2012

The headline is that Warren Buffett has prostate cancer. There are legions of Buffett experts and prostate cancer experts. I am neither. Berkshire Hathaway (BRK-A, BRK-B) stock has been on my short list to buy and recommend to my subscribers for the last month. So far the U.S. stock market has moved up strongly in 2012. Search for companies that have underperformed year to date but may catch up led me to Berkshire. An observation that money flows into this stock at critical technical points in the market, especially during intraday market swoons, elevated Berkshire on my list. Berkshire is trading at a

TAKE PROFITS ON ADBE AND EXIT THE POSITION

April 17, 2012

Consider taking profits on ADBE right here at $33.67 and exit the position. this is in accordance with our strategy of continuously booking some profits. Unrealized profits can easily disappear in the volatile markets. Further, those investors who stay in the mode of continuously taking profits have an easier time taking losses on positions that do not work out.

APPLE AT $1,650 LOOKING LIKE A PIPE DREAM

April 17, 2012

I have been a mega bull on Apple (AAPL) ever since recommending a buy in the stock when it was $131. I rely heavily on rigorously analytical, probability-based algorithms. I was writing about the high probability of Apple stock reaching $1,000 long before Apple began it’s manic run from below $400 earlier this year. Lately, a race had developed between analysts to see who had the guts to increase their target on Apple to top the other guy’s target. I have previously written that I find this race troubling. A reader may ask, “What is the difference between your $1,000 and other

NEW ACTIONABLE IDEA ON JPM

April 16, 2012

This post is being reproduced from an earlier post in ZYX Buy Change Alert. J.P. Morgan (JPM) is the strongest bank in the U.S. and perhaps in the world. Yesterday JPM reported earnings . The stock first spiked up and then went down with the market. The CEO Jamie Dimon was very optimistic on the call Earnings report of a large international bank is very complex. After reviewing the earnings report and the conference call. JPM is a new very long-term buy recommendation. JPM also offers about 2.7% dividend. FLY IN THE OINTMENT JPM is a constituent of Dow Jones Industrial Average and a big part of S&P 500. If