Help SI catch a falling knife

S

stonedinvestor

I have a baby bio I'd like to build a position in for 07'
Sangamo- SGMO it's been dropping hard. Volume is drying up a bit and with tax loss selling ending next week I'm probably close to buying. Of course it's a bad looking chart but (as usual) I like the story. Had a BW pump piece which lured investors in at $7-$8 bucks- that could be a problem too if they haven't sold already and are waiting to break even. Then again these guys could get bought any moment.... What do you think?
$5.90 - $6.20 comes to mind.
 
The Time for buying is nearly upon us! It's been a pretty picture so far since the first post- I think we have found a bottom. Some background on SGMO.
A team led by scientists at Sangamo Biosciences in Richmond, California has reported in the journal Nature that they have developed a sophisticated new process for editing DNA without bombarding the genome with foreign genetic material.

They treated the cells in test tubes with the company’s proprietary type of “zinc finger nucleases” (ZFNs)... ZFNs are proteins made up of “fingers” of around 30 amino acids and stabilized by a zinc atom. Each finger binds to a specific combination of DNA bases and is attached to a DNA-cutting enzyme called a nuclease.

By using different combinations of amino acids, they can be designed to latch on to DNA at exactly the place where the mutated gene lies and cut it. This triggers the body’s natural repair process, called homologous recombination, which corrects the gene where the DNA was cut, The researchers provided the cells with a copy of the correct gene as a template.

This could be the beginning of a huge step forward. Previous forms of genetic therapy often caused cancer. Scientists would bombard the genome with the desired information and hope it stuck in the right place. It's like blindly lobbing paint balloons at a road sign hoping to cover graffiti without obscuring the speed limit. Sometimes it worked, often it didn't.

This new method is more like word processing. These scientists are hopeful that this advance will yield useful therapies for single gene mutations like that which causes sickle cell anemia or the "bubble boy" disease.

And...

SGMO has developed a technology that disrupts the CCR5 gene - the gateway for the human immunodeficiency virus (HIV) to enter immune system T-cells. They plan to begin a human clinical trials of its therapy in HIV patients in 2006.

Sangamo’s therapy would draw tens of millions of T-cells from a patient, disrupt the CCR5 gene in them, amplify the cells so there are about 1 billion of them and reinfuse them into the patient. Doing so would provide a reservoir of healthy and uninfectable T-cells that would fight both opportunistic infections and HIV itself. Once altered, those cells’ CCR5 genes are permanently modified.

I belive this baby bio to have the goods. A takeout by big pharma makes a lot of sense. This little Co has ALREADY partnered with Pfizer, (our buyer I think), DOW chem, & Edwards Lifesciences. What's great is the technology is BROADLY APPLICABLE for human therapeutics, agriculture & protein manufacturing!
Cantor Fitz has a PT of $17! Phase 2 Clinical for lead product for diabetic neuropathy starting now and the exciting one> phase 1 on the HIV treatment slated for EARLY 07'.

If there's one thing I've learned in the market over the years... it's always follow the stonedinvestor's advice in Biotech! Sangamo smells like a big winner and it's at a good price. Since I'm on damn
" restriction " again at ETrade I'll have to wait a couple days but this will be my next buy.


~ stoney
 
Quote from stonedinvestor:

I'm on damn
" restriction " again at ETrade I'll have to wait a couple days but this will be my next buy.
~ stoney
More...

LOL.

I hope you will excuse me it I don't jump on a biotech stock...pumped by somebody named "StonedInvestor"... who is on restriction at E-Trade.

Funny post.
 
Excuse me! Mr or Mrs Lindq, we don't use the word
" pump " in reference to the stonedinvestor. That's pretty low. Don't heed my advice at your own financial peril. My word I AM the little guy not the pumper I have a special gift I always have of picking biotechs that absolutely do moon shots. Granted I've picked a few that blew up the other way- but my hit ratio in Bio is above 70%. The least you can do is keep it on your watch list.

This ETrade restriction isn't as onerous as it sounds. I'm not even sure what I did, if you buy and sell on the same day alot without waiting for the 3 day clearing process you can run afoul of the system. Now for I think 90 days I have to wait till a sale clears to buy something else. It truly sucks.
 
I sent an question into a professional tape reader harry boxer on SGMO just to get another technical opinion since the help here from ET was lets say less than overwhelming. Here is his reply.:

SGMO: It appears to have a rising bottoms configuration with support between 5 ¾ and 6. That’s the right price. The stock is in a neutral pattern with major double-top resistance around 8 ¼. A move above 8 ¼ on any volume would get me very interested. That’s multi-year resistance going back to 2004.
 
UPDATE** 2 MILLION SHARES TRADED!!!
NOW $8.79.!

Now Folks stonedinvestor gave his favorite biotech to you all free of charge @ $6.20 how many of you took advantage? Remember I sent this into a professional tapereader who said: A move above 8 ¼ on any volume would get me very interested. That’s multi-year resistance going back to 2004.....

Well, you know I'll be getting back in touch on TUESDAY with my friend and I expect that by Wed SGMO will be profiled in a tech trading internet site...

So that leaves two trading days for you non believers to get on board... This stock is going to $17! ~ stoney
 
As promised my Q&A with professional chart reader...

> Sir you may not have noticed the TWO MILLION shares traded on Friday because you were very sick but I certainly did! We have cruised by your $8 1/4 mark and you should now be ( I hope) very interested. I own 1200 shares and was wondering if I should let it ride or buy more? I see the stock getting up ovger $11 and towards $17 if everything works out in the lab... Thank you.
Answer: I can’t disagree with your analysis. The stock took out a key double-top on heavy volume recently, and is currently pausing, but it looks very promising for higher prices. This is a good time for biotech stocks, and a lot of them are starting to move. This stock is one we will certainly monitor more closely. I would definitely let it ride because the stock’s in a consolidation formation over the last three sessions and narrowing. If it breaks out of this it can run again. No reason to exit yet, and every reason to hold it. Although short-term it is overbought.
 
Well good things come to those who wait.
the Bell: Sangamo Shares Up
Wednesday July 11, 9:12 am ET
Sangamo BioSciences Rises on Sigma Protein Development Pact

NEW YORK (AP) -- Sangamo BioSciences Inc. shares rose in premarket trading Wednesday, on pace to open at a five-year high after the company said it will work with Sigma-Aldrich Corp. to create laboratory research chemicals using technology Sangamo has developed.

Sangamo said it has modified zinc finger DNA-binding proteins, which are found in every cell, to modify genes and cell function. The companies will develop reagents, or chemicals used to start chain reactions.

Sigma-Aldrich will pay $13.5 million initially, including a purchase of 1 million shares of Sangamo stock. Sangamo could receive up to $22 million more depending on development and commercial progress.

Cantor Fitzgerald analyst Pamela Basset reiterated a "Buy" rating on Sangamo shares, and expects the stock price nearly double over the next year, rising to $17. She said the deal will be worth $60 million, not including royalties Sangamo could receive, if development is successful.

Basset said the deal shows that ZFP technology has a great deal of commercial potential, as pharmaceutical companies will want to use it in testing their products.

"We expect the Sigma-Aldrich collaboration to focus on creating cell lines for the entire 'druggable' universe all genetic targets which would enable pharma and biopharma companies to test drug candidates in a very rapid and specific manner," she said.

Shares gained 46 cents, or 5.4 percent, to $9.01 in premarket electronic trading, and were on pace to open at a five-year high. The stock closed at $8.55 Tuesday, and has traded between $4.26 and $8.89 in the last year.

>> Oh it's well over $10 I just checked! LOVE SI
 
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