It appears that we are going to get away with murder this morning, so TGIF! In after hours, we were staring an 8%+ loss in our Overnight Trade in RIMM in the face. Now, we are looking at getting out for somewhere between 2-3%, which is definitely not as bad as originally thought. RIMM reported some solid earnings, but the market is not buying it. That was our only open position. Let’s get into some morning plays, and look for a new Longterm Rating on Align Technology (ALGN) later today.
Buy Pick of the Day: Alkermes Inc. (ALKS)
Analysis: After such success with Savient (SVNT) on Wednesday, another biotech company caught my eye this morning. Alkermes, in after hours, announced that they had received an FDA panel’s approval for their drug Vivitrol in a 
vote of 12-1. This does not mean approval, but typically, a company receiving such approval on panels gets their drug approved by the FDA as a whole.
The news has sent the shares up around 4.5%, but they were as high as 6% this morning. The biggest news for any biotech company are FDA approvals and panel approvals. Other than that, it is good trial runs. So, hearing this news for ALKS, I think the stock should shoot up this morning. The market is looking like it will open a bit higher but doesn’t have really great legs to move higher. ALKS has the sort of news to get some really great movement.
Technically, the stock was trading in a pretty narrow range, and this morning’s news will definitely make the stock move out of its current range and breakout. The bands need to be ignored, but stochastics and RSI are important. The stock was only slightly overbought as of yesterday, and it has a lot of room for more buying to the upside. As well, the stock is only slightly overvalued on RSI, and it has a lot of room to the upside there as well. Additionally, the stock has high short interest, so a stock short squeeze is also an attractive thing about this stock.
Get in right away on this one before it takes off running.
Entry: We are looking to enter ALKS at 14.75 – 14.95.
Exit: We are looking to exit for a 2-3% gain.
Stop Loss: 3% on bottom.
Short Sale of the Day: Oshkosh Corp. (OSK)
Analysis: Oshkosh received an upgrade this morning from Robert W. Baird. They moved…
