Ready for A Break Out: AGEN, LXRX, TLCR

by Symptom Advice on May 31, 2011

The following three stocks are in a ‘Lull’ and could ‘Take Off’ or ‘Not’ depending on ‘the Faithful’.

Agenus inc (NASDAQ:AGEN) is currently trading in the $0.94 range and has been trading between $0.90 and $1 for the past three and half months after a dip from $1.10 at the beginning of the year. AGEN is very liquid and it’s not from a lack of buyers or sellers that the stock seems; stuck. Agenus inc has very few short sellers applying any downward pressure and on the bright side the Company has positive, double digit EPS projections quarter over quarter. This month Rodman & Renshaw put a $2 target on the stock. Agenus inc sells the Oncophage vaccine for the treatment of adjuvant renal cell carcinoma (kidney cancer). The company also has various product candidates under development, which include QS-21 Stimulon adjuvant, which is in Phase III clinical trials for the treatment of non-small cell lung cancer, melanoma, malaria, and singles, as well as in Phase II clinical trials for the treatment of Alzheimer’s disease. At 94 cents? what an ‘entry level’ price. If ‘the Faithful’ began aggregating that could be the catalyst to bring in some new buyers and push for that $2 target.

At the bottom of a long dip is Lexicon Pharmaceuticals inc (NASDAQ:LXRX) which was trading in the $2.20 range at the beginning of the year and is currently trading in the $1.56 range, a decline of 29% in a little more than four months. LXRX is also very liquid. Its percentage of short sellers is average and the stock has also has positive, double digit EPS projections quarter over quarter. The company’s drug candidates include LX1031, which has completed Phase II clinical trials for the treatment of irritable bowel syndrome and other gastrointestinal disorders; LX4211 that has completed Phase II clinical trials to treat type 2 diabetes; LX2931, which is in Phase II clinical trials for the treatment of rheumatoid arthritis and other autoimmune diseases; and LX1032 that has completed Phase II clinical trials to treat the symptoms associated with carcinoid syndrome. Lexicon Pharmaceuticals inc is in the “Phase II Blues” but as these drugs move into Phase III trials, the stock will gain share valuation. Buying low at the base of bounce back could be very, very rewarding in the future.

Talecris Therapeutics Holdings Corporation (NASDAQ:TLCR) is really well positioned for a rally to continue its run up: the stock was trading in the $22 range in December and nearly topped $29 earlier this month; a gain of 31% in a little more than five months. The stock is currently trading in the $27.97 range. I think TLCR will rally, it has plenty of support and the strength of its run up is solid. This could be a $33 stock in the near term (3 mos). Talecris Therapeutics Holdings Corporation has virtually no short sellers to apply downward pressure and positive sales and EPS projections quarter over quarter. The Company’s products include: Gamunex, an intravenous immune globulin for the treatment of primary immune deficiency and autoimmune diseases; and Prolastin, an alpha-1 proteinase inhibitor for the treatment of alpha-1 antitrypsin deficiency-related emphysema. It also offers Hyperimmunes, which are antibody preparations for hepatitis a, hepatitis B, rabies, tetanus, and treatment of Rh negative women pregnant with Rh positive children.  

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