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Re: [RT] SP500 - pull back times?



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Hi Rakesh,

I totally agree with you about the risk and your chart says it all. I do 
not believe the bullish features of the stock are totally baked into the 
price. What your chart is revealing to me is the selling pressure placed 
on the stock by people who have a quick profit converting their $2.50 
stock to the market and the market absorbing it. Even Insiders are buying 
it above the conversion price.

A very similar situation occurred with FORD. The charts are very similar 
and there was a blip pullback, similar to what you describe. FORD then 
ran to over $20 after its parabolic rise.

My take on parabolic rises is that they fail if there are no fundamentals 
behind them. FORD had strong fundamentals behind it. VPHM has even 
stronger fundamentals with a virtual monopoly on the only drug that 
treats an epidemic of hospital origin intestinal infections in the 
elderly. My mother had to be on Vancocin 2 times after being in the 
hospital and getting the infection known as C. dificile. I am no doctor 
so I hope the spelling is correct. It is not a cheap drug but it was the 
only thing that worked after they tried lower priced drugs. The profit 
margin on it is very good.

Charts are great and a couple of weeks ago some people were posting 
charts that indicated we were not going any higher in the S&P. Eventually 
they will be right. But sentiment about a stock, an industry, a market 
yada yada yada are also important about where any of these are going.

I intend to buy more on a pullback. I bought DNA at $50 because a medical 
researcher told me that the full potential of Avastin was not baked into 
the cake because scientifically breast cancer studies would show it to be 
efficacious and open an even more enormous market. I  bought certain 
shale oil stocks like PCZ because their reserves are awesome. I bought AX 
the minute I heard about the NYSE merger because I like owning the bookie 
and missed CME. I hate "story" stocks.

VPHM is no DNA but it has breakthroughs being paid for by Big Pharma and 
now it has a cash cow. It has the lowest Forward PE in the medical group 
for what it has. I do not see any other stock that I would commit 2%
of my equity to an up to 5% on a pullback. I got shaken out of a few 
others with blip pullbacks and am just not that good at getting re-entry.

I doubt whether anyone here believes me on this because I am new here. 
But it is unlikey that this mainly commodity futures oriented group can 
move this stock anyway. So I am just trying to contribute what stock 
research I am doing to this board as I learn more about what you folks 
know best.

Thank you for the work you put into the chart and sharing it.

Sallie


> <html><body>
> 
> 
> <tt>
> The VHPM chart whether from a daily perspective or a<BR>
> weekly perspective shows a parabolic rise, if not<BR>
> almost vertical.<BR>
> <BR>
> The developments on the fundamental side as indicated<BR>
> by you, would mean a lot of fund managers would now be<BR>
> vying to have it in their holdings. So is all that<BR>
> demand for the stock in the price? Please note I am<BR>
> not talking about whether the stock merits this price<BR>
> or a lower or higher price. My concern is whether the<BR>
> demand for the stock triggered by the developments in<BR>
> the company is fully factored into the stock price or<BR>
> not.<BR>
> <BR>
> The stock has made a very handsome move and even on<BR>
> the weekly chart the RSI is nudging the 80 levels.<BR>
> Fairly overbought - here the caveat is it can remain<BR>
> overbought for extended periods of time. However if I<BR>
> go down to the daily time frame the RSI has flipped<BR>
> over(chart attached). So...net net one could maybe get<BR>
> it at a better price?<BR>
> <BR>
> Please excuse the rambling....for my own benefit than<BR>
> anythng else. Hope to hear from the group.<BR>
> <BR>
> Regards<BR>
> <BR>
> R<BR>
> <BR>
> --- sg9310@xxxxxxxxxxx wrote:<BR>
> <BR>
> > Ben,<BR>
> > <BR>
> > There are no option chains for VPHM, but I like the<BR>
> > idea. Take a Look at <BR>
> > FORD chart. It is almost exact...and it gradually<BR>
> > went to over $20. That <BR>
> > field is far less glamorous but FORD was earnings<BR>
> > driven like this one.<BR>
> > <BR>
> > Rx news comes out next week and by the AH uptick, I<BR>
> > believe good news is <BR>
> > leaking.<BR>
> > <BR>
> > I have done too many stocks like this, got scared<BR>
> > and scalped and they <BR>
> > ran away [ANTP, BOOM, FORD to name a few]. There is<BR>
> > a window here where <BR>
> > VPHM has a monopoly on Vancocin and will have new<BR>
> > drugs coming along.If <BR>
> > the one for rhinovirus comes through, it is<BR>
> > gangbusters. There are not <BR>
> > many pharmaceutical companies with already good<BR>
> > sales and profits with <BR>
> > ongoing potential being suported by Big Pharma<BR>
> > milestone payments.<BR>
> > <BR>
> > I do not want to come off trying to convince you or<BR>
> > anyone else. They are <BR>
> > just the facts as I know them. <BR>
> > <BR>
> > Sallie<BR>
> > <BR>
> > <BR>
> > <BR>
> > <BR>
> > <tt><BR>
> > I like the profit margin over 24%<BR><BR>
> > what I do not like is the  100% increase since Jan<BR>
> > of this year<BR><BR>
> > this should be bought on a pull back<BR><BR>
> > or if you can sell at 7 take your money and run and<BR>
> > replace the position <BR>
> > <BR><BR>
> > with a spread<BR><BR>
> > buy the 7.5 calls for sep and sell the 10 calls for<BR>
> > sep<BR><BR>
> > Ben<BR><BR>
> > ----- Original Message ----- <BR><BR>
> > From: <sg9310@xxxxxxxxxxx><BR><BR>
> > To: <realtraders@xxxxxxxxxxxxxxx><BR><BR>
> > Sent: Friday, June 17, 2005 11:07 PM<BR><BR>
> > Subject: [RT] SP500 - pull back times?<BR><BR>
> > <BR><BR>
> > <BR><BR>
> > > Ben,<BR><BR>
> > ><BR><BR>
> > > Is this backtested for any period of time with<BR>
> > results? It is so<BR><BR>
> > > brilliantly simple that my instincts see much<BR>
> > validity just by looking <BR>
> > at<BR><BR>
> > > a recent chart. I am saving your post to check it<BR>
> > out with some <BR>
> > other<BR><BR>
> > > things and also in reverse. I will eventually get<BR>
> > into some futures <BR>
> > and<BR><BR>
> > > the Indexes fascinate me.<BR><BR>
> > ><BR><BR>
> > > Thank you so much.<BR><BR>
> > ><BR><BR>
> > > I remember some posts from you where you mention<BR>
> > stocks on pullbacks. <BR>
> > So<BR><BR>
> > > I take it you are also a stock person.<BR><BR>
> > ><BR><BR>
> > > I recently took a position in VPHM on a breakout.<BR>
> > They bought the <BR>
> > rights<BR><BR>
> > > and are selling the Lilly drug Vancocin that is<BR>
> > still a blockbuster<BR><BR>
> > > because so many elderly are getting hospital<BR>
> > infections that ONLY<BR><BR>
> > > Vancocin resolves them.That plus other drugs in<BR>
> > the pipeline are<BR><BR>
> > > compelling, at least to me.<BR><BR>
> > ><BR><BR>
> > > From my calculations VPHM can earn close to $1.00<BR>
> > per share on a <BR>
> > fully<BR><BR>
> > > diluted basis and is selling around $6.60 or so.<BR>
> > Insiders are buying <BR>
> > it<BR><BR>
> > > and a recent buy was at that price. Debentures are<BR>
> > being converted <BR>
> > to<BR><BR>
> > > stock and investors are taking down the stock as<BR>
> > it comes out...the <BR>
> > debt<BR><BR>
> > > of the company will be drastically reduced. So a<BR>
> > strong base is<BR><BR>
> > > developing with people coming in at these prices.<BR>
> > I know there are a <BR>
> > lot<BR><BR>
> > > of "story" stocks. This one seems real,  at leat<BR>
> > to me.<BR><BR>
> > ><BR><BR>
> > > Anyone here I know is sophistocated moreso than I<BR>
> > and should do their <BR>
> > own<BR><BR>
> > > due diligence.<BR><BR>
> > ><BR><BR>
> > > Sallie<BR><BR>
> > ><BR><BR>
> > ><BR><BR>
> > ><BR><BR>
> > ><BR><BR>
> > > <tt><BR><BR>
> > > Hello<BR><BR><BR>
> > > <BR><BR><BR>
> > > this is the most profitable way to make<BR>
> > money<BR><BR><BR>
> > > you place 6 buy stops<BR><BR><BR>
> > > 1 at 2.1% above the lowest low in 89 days<BR><BR><BR>
> > > another at 3.4% above that low<BR><BR><BR>
> > > another at 5.5% above that low<BR><BR><BR>
> > > then at 6%<BR><BR><BR>
> > > 7<BR><BR><BR>
> > > and sell all at 8.9% above that low<BR><BR><BR>
> > > Ben<BR><BR><BR>
> > > <BR><BR><BR>
> > > ----- Original Message ----- <BR><BR><BR>
> > > From: <sg9310@xxxxxxxxxxx><BR><BR><BR>
> > > To: <realtraders@xxxxxxxxxxxxxxx><BR><BR><BR>
> > > Sent: Friday, June 17, 2005 9:23 PM<BR><BR><BR>
> > > Subject: [RT] SP500 - pull back times?<BR><BR><BR>
> > > <BR><BR><BR>
> > > <BR><BR><BR>
> > >> Jusr a question..... If you folks are so sure<BR>
> > that you are<BR><BR>
> > > pyramiding<BR><BR><BR>
> > >> shorts, are you also paricioating in the upswimg<BR>
> > as it has been<BR><BR>
> > > occurring.<BR><BR><BR>
> > >><BR><BR><BR>
> > >> Sallie<BR><BR><BR>
> > >><BR><BR><BR>
> > >><BR><BR><BR>
> > >><BR><BR><BR>
> > >><BR><BR><BR>
> > >><BR><BR><BR>
> > >><BR><BR><BR>
> > >><BR><BR><BR>
> > >><BR><BR><BR>
> > >>> my short is at 1230sp05u<BR><BR><BR>
> > >>> ----- Original Message ----- <BR><BR><BR>
> > >>> From: EAdamy<BR><BR><BR>
> > >>> To: realtraders@xxxxxxxxxxxxxxx<BR><BR><BR>
> > >>> Sent: Friday, June 17, 2005 1:46 PM<BR><BR><BR>
> > >>> Subject: Re: [RT] SP500 - pull back<BR>
> > times?<BR><BR><BR>
> > >>><BR><BR><BR>
> > >>><BR><BR><BR>
> > >>> Yes, however there are still some rather extreme<BR>
> > upside <BR>
> > targets<BR><BR><BR>
> > >> remaining 1228-29. I'm<BR><BR><BR>
> > >> pyramiding into shorts.<BR><BR><BR>
> > >>><BR><BR><BR>
> > >>> Earl<BR><BR><BR>
> > >>> ----- Original Message ----- <BR><BR><BR>
> > >>> From: Rakesh Sahgal<BR><BR><BR>
> > >>> To: Real Traders<BR><BR><BR>
> > >>> Sent: Friday, June 17, 2005 11:27 AM<BR><BR><BR>
> > >>> Subject: [RT] SP500 - pull back times?<BR><BR><BR>
> > >>><BR><BR><BR>
> > >>><BR><BR><BR>
> > >>> 1. Retracement level of 886 of prior move<BR>
> > reached.<BR><BR><BR>
> > >>><BR><BR><BR>
> > >>> 2. MACD not keeping pace. Negative<BR>
> > Deivergence?<BR><BR><BR>
> > >>><BR><BR><BR>
> > >>> 3. RSI hugging the 65 level.<BR><BR><BR>
> > >>><BR><BR><BR>
> > >>> 4. Stochastics also toppish.<BR><BR><BR>
> > >>><BR><BR><BR>
> > >>><BR><BR><BR>
> > >>> Time for a pull back as opposed to stopping for<BR>
> > a<BR><BR><BR>
> > >>> breather?<BR><BR><BR>
> > >>><BR><BR><BR>
> > >>><BR><BR><BR>
> > >>> Rakesh<BR><BR><BR>
> > >>><BR><BR><BR>
> > >>><BR><BR><BR>
> > >>><BR>
> ><BR>
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