This Weeks Stock Pick - Swing Trading Tip
6-15-2010 Stock Recommendation XOMA - Strong Buy
The STW Biotech penny stock swing trading recommendation for the week ending
6-18-2010 is
XOMA. The company received good
but expected news today that they will be given a 90 day extension to meet
NASDAQ guidelines for continued listing. While this was priced in we
believe that this action will be a turning point in share price which has
now passed resistance and the pivot point at .46 per share of XOMA stock.
There has been an
ongoing string of good news on the technology of the 2 lead drug candidates
for eventual FDA approval for XOMA. Details are below on xoma 052 which is
in phase 2 trials and shows promising results as a miracle anti-inflammatory
that will become a key medicine for people with diabetes and coronary
disease as will as many other inflammatory diseases, some of these other
uses will be discussed on a conference call, Thursday 6-17. In addition XOMA has many drugs in varying stages of pre
IND development coming out of the pipeline in
the near future and they are one of the few developmental biotech companies
that actually earn income from their many pharma research and production
partnerships with major pharmaceutical companies. It is the belief of STW that in the mid term XOMA is a take over target in the
future.
Or recommendation this
week is for a swing trade with and entry point of between .44 and .48
looking for a swing into the .60+ range over the next 6 weeks for a 30% to
50% profit on the trade.
We are long XOMA.
June 15, 2010, 8:02 a.m. EDT ·
NASDAQ Grants
XOMA's Request for
Continued Listing
BERKELEY, Calif., Jun
15, 2010 (GlobeNewswire via COMTEX) -- XOMA Ltd. /quotes/comstock/15*!xoma/quotes/nls/xoma
(XOMA
0.46, +0.01, +2.33%) , a leader in the discovery and development of
therapeutic antibodies, today announced that a NASDAQ Listing Qualifications
Panel (the "Panel") has granted the company's request for an extension of
time, as permitted under NASDAQ's Listing Rules, to comply with the $1.00
per share minimum bid price requirement for continued listing. In accordance
with the Panel's decision, on or before September 13, 2010, the company must
evidence a closing bid price of $1.00 or more for a minimum of ten
consecutive trading days or its common shares will be subject to delisting
from The NASDAQ Global Market. Under NASDAQ's rules, this date represents
the maximum length of time that a Panel may grant to regain compliance.
The determination
follows the company's hearing before the Panel on May 6, 2010, at which the Panel considered the company's plan to regain compliance
with the minimum bid price requirement, including seeking shareholder
approval of a potential reverse stock split at its 2010 annual general
meeting of shareholders on July 21,
2010. The company is working diligently to satisfy the terms of the Panel's
decision.
About
XOMA
XOMA
discovers, develops and manufactures novel antibody therapeutics for its own
proprietary pipeline as well as through license and collaborative agreements
with pharmaceutical and biotechnology companies, and under its contracts
with the U.S. government. The company's proprietary product pipeline
includes:
·
XOMA 052, an anti-IL-1 beta
antibody in Phase 2 clinical development for Type 2 diabetes, Type 1
diabetes and cardiovascular disease, with potential for the treatment of a
wide range of inflammatory conditions.
·
XOMA 3AB, an antibody candidate
in pre-IND studies to neutralize the botulinum toxin, among the most deadly
potential bioterror threats, under development through funding provided by
the National Institute of Allergy and Infectious Diseases of the National
Institutes of Health (Contract # HHSN266200600008C).
·
A preclinical pipeline with
candidates in development for several diseases.
In
addition to its proprietary pipeline,
XOMA develops products with premier pharmaceutical
companies including Novartis AG, Schering Corporation, a subsidiary of Merck
& Co., Inc. and Takeda Pharmaceutical Company Limited.
XOMA's
technologies have contributed to the success of marketed antibody products,
including LUCENTIS® (ranibizumab injection) for wet age-related macular
degeneration and CIMZIA® (certolizumab pegol) for rheumatoid arthritis and
Crohn's disease.
The
company has a premier antibody discovery and development platform that
incorporates an unmatched collection of antibody phage display libraries and
proprietary Human Engineering™, affinity maturation, Bacterial Cell
Expression (BCE) and manufacturing technologies. BCE is a key breakthrough
biotechnology for the discovery and manufacturing of antibodies and other
proteins. As a result, more than 50 pharmaceutical and biotechnology
companies have signed BCE licenses, and several licensed product candidates
are in clinical development.
XOMA
has a fully integrated product development infrastructure, extending from
pre-clinical science to approval, and a team of about 215 employees at its
Berkeley, California location. For more information, please visit
http://www.xoma.com.
XOMA CHART 
Bollinger Bands
XOMA is
trading within its Bollinger Bands. This is a normal condition and suggests
that the stock is neither overbought nor oversold relative to the recent
price action.
MACD
XOMA's
MACD is currently indicating a weak bullish signal. Although the MACD is
trending above the signal line, the indicator is still below 0, which
suggests that the underlying moving averages are bearish.
Stochastics
The
Stochastic Oscillator is registering a strong bullish signal as the %K has
crossed above the %D and the oscillator recently moved above the critical
value of 20 and is no longer oversold.
Ultimate Oscillator
According
to the Ultimate Oscillator which is currently at 28.12%, below the critical
value of 30, XOMA may be oversold. While this does not necessarily mean that
the stock will rally, it does suggest that selling pressure may not be
sustainable at the current level. |
