iBankCoin
18 years in Wall Street, left after finding out it was all horseshit. Founder/ Master and Commander: iBankCoin, finance news and commentary from the future.
Joined Nov 10, 2007
23,419 Blog Posts

Another ‘Low Risk’ Biotech Play

This one comes from the joyous communist state of China (no offense to socialists).

WuXi PharmaTech (Cayman) Inc. (ADR) [[WX]]

I would explain what they do; but it’s entirely too non-specific and rather vague. Just know, they test drugs on dogs and sell them to people in China.

According to a recent Piper report, WX is trading about 17x 2009 numbers, making them one of the cheaper biotech plays in a very hot space. There is less than 10% institutional ownership in the name and more than 2.5 million shares are sold short. The stock can “giddy-up” here, if it can break out above $20. My apologies to Peter Najarian for borrowing that quaint phrase.

Now to the charts:

As you can see from the above chart, WX has not been a very pristine performer. As a point in fact, it has been downright dreadful. Now, into tomorrow’s tape, expect weakness due to the American International Group, Inc. [[AIG]] numbers. However, as in all infantile bull markets, expect the shorts to scramble and the bulls to eat them.

If possible, get involved, buying a small piece of WX into a .50 cent decline, then giddy up. Sorry Peter, once again.

My price target, based upon the above chart, is $25 or a test of the 200 day moving average.

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76 comments

  1. Woodshedder

    LMFAO…nice work Mr. Fly.

    You forgot to include RSI2 though, but that’s okay.

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  2. Junk Spread

    Fly. How about some trendlines and whatnot? Them are the shit.

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  3. boca

    The Fly has not only given up swearing, he’s got a new found love of technical analysis.

    I think this stock is Fly’s litmus test for the sector, if (or when) a piece of crap like this goes up, it’s momo time for all stocks in the sector.

    I warned y’all this would happen when his blood pressure meds kicked in. I may just have to be bad until Fly stops being so good, just to balance things out.

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  4. mrkcbill

    Fly– thank you so much.

    Off to have some milk and cookies.

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  5. cajun

    ROFL..haha

    I had a feeling this was coming.

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  6. boca

    Don’t choke on those milk and cookies.

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  7. Woodshedder

    Boca, I vote for you to be bad! Did you know 95N runs straight to Richmond from Florida?

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  8. mdawsz

    This is Fly’s first post on technical analysis that doesn’t involve a crude rendition of a cock ‘n balls.

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  9. Woodshedder

    Damn, Mdawsz always turns up when shit gets tight around here! How are ya M?

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  10. bugsanddrugs

    That just made my day. Damn- that is just great stuff.

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  11. Mr. LIMM

    I would explain what they do; but it’s entirely too non-specific and rather vague. Just know, they test drugs on dogs and sell them to people in China.

    And ret me terr you, doze poochies ah DEEE-RICIOUS!

    __

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  12. boca

    OK, no problem Shed. Can you reserve a motel room for me, Anton and Bill Ackman? We’ll need a couple of days and plenty of “supplies”.

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  13. Prospectus

    Fly,

    Your Yahoo chart looks like ass.

    Use FINVIZ:

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  14. The Fly

    Prospectus:

    Your type of crude behavior is why America is in such a mess. All of the lowly type, borrowing from good banks to buy good homes, only to renege on their promises.

    You should be ashamed of yourself.

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  15. Leonard The Monkey

    So that is how chartists are born… from destroyed traders (no offense woody).

    Fly – I hope you get your balls back soon, this is just awfulness.

    Why don’t you suggest a trade on MSFT next?

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  16. mdawsz

    Wood, I am well, your newish blog and avatar are looking good…finally getting some respect around here I see.

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  17. Woodshedder

    Boca, I’m crushed.

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  18. Junk Spread

    KMX just declared bankruptcy. In full disclosure, I’m short one metric assload…

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  19. Danny

    Why? Cuz Boca wants to bone anton and not you? I don’t get it.

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  20. Prospectus

    Fly,

    My apologies. I should have said: “Your graphical rendition of transactions from the information vendor with an expression of excitement for a name gives the distinct appearance of a long-eared beast of burden”.

    Off to cash out my home equity loan and buy FRE and FNM like any good American patriot would do.

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  21. boca

    Ah but Shed, I have the utmost respect for Mrs. Shed, who was smart enough to meet you first. Thus I must contemplate the status of being good friends. However, you are of course invited to the par-tay.

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  22. boca

    He’s just teasing me Danny, it keeps me in a good mood.

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  23. CubsRock

    Nice Fly, Hammer Time!

    Oh yeah, Welcome to Club Beta Blocker!

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  24. Woodshedder

    Boca, you are a most honourable woman.

    So, you are saying I can be the camera man?

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  25. mrkcbill

    Fly why don’t you invite Gary Kaltbaum to do some guest blogging until the Dow touches 11,000…I understand he is very insightful and a bit controversial.

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  26. boca

    hahahaha perhaps, perhaps…. I will have to think about that one.

    Fly better get back to being bad soon, before I burn to a crisp, it’s gettin’ hot ovah heah.

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  27. Danny

    HAH. I would be stoked and horrified to watch that porno.

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  28. Danny

    Yeah, speaking of that Boca, whats up with you sending Jake dirty cell-phone pics, prompting him to write a whole post about it? You know, you could send me some too.

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  29. boca

    Don’t worry it will never happen Danny, except in the confines of my evil mind.

    After all, I’m not even a member of the mile high club, like you – you’re keeping it real, and I’m talking sh*t on the internets.

    Adding… that’s completely and totally untrue about Jake, sheesh. LOL!

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  30. boca

    You know, I’m going to have a hard time falling asleep tonight now, y’all get me very wound up. I’m going to have to go “try and relax” now.

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  31. Rally Monkey

    The market can stay irrational longer than the Fly can remain non-profane.

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  32. The Fly

    Boca:

    Are you sure you are not Trading Goddess masquerading as Boca?

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  33. Danny

    I know.

    The airplane was a element of luck–she seemed pretty determined. I was just there and smart enough to take executive action.

    Don’t let Jake here you say that. He seemed pretty enamored. Which is fair. One thing is for certain though–I condone all e-crushes on Boca because I am 100% sure that she isn’t a mustachioed puerto rican man like Trading Goddess.

    The answer is no.

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  34. Danny

    Oh shit, fly just blew my mind. Crap, I never even thought of that.

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  35. Juice

    Fly, dude, you’re scaring me …. snap out of it before the damage becomes irreversible.

    If I wanted polite and plain vanilla gay, I’d summon Dr Bob .

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  36. The Fly

    No worries Danny. I just did an ip check. Boca is NOT TG.

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  37. Topper Harley

    sixpack Budlight Lime (an experiment never to be repeated), but this shit has me ROFLMAO.

    Amazing stuff as usual from “The Fly”

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  38. big snacks

    fly…

    you bet football?

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  39. boca

    NO WAY! I am not TG. Hah, you scared Danny a little bit though. I’m just me, really female, really from Boca, and have a very active imagination that helps me enjoy life. C’mon, I even linked you guys to my Amazon and Ebay accounts, I’m legit.

    I’m hoping you get back to normal pretty soon Fly.

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  40. The Fly

    Snacks:

    If by football you mean soccer, I most certainly do not.

    I do not gamble. I do that enough at work.

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  41. Danny

    thank the sweet lord. my god.

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  42. nncoco

    LOL!

    Nice pick! I’ll ad that to my falling knife portfolio.

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  43. DPeezy

    Somebody smack the man with a ‘fly’-swatter. Enough of this ‘Jack/Narrator’ bullshit. Wake me up when you’re once again Tyler Durden.

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  44. alphadawgg

    DPeezy–
    The Fly is a man of his word. If he says he won’t utter a curse word until Dow 11,000, then you may be taking a rather long nap.

    Try watching “The Big Lebowski”, or “Goodfellas”. It may help you deal with your withdrawal symptoms.

    Let’s be realistic. For all we know, the Fly is unleashing a cavalcade of curses and abuse on his trader/servant, while keeping an air of civility and politeness on his posts.

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  45. Aris

    great post.

    fucking china cutting off shark fins, feeding them to dogs, bottling the dried excrement, and selling it to olympians suffering from ‘coal sickness’.

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  46. Fab

    WX is fucking junk. As are most Chinese companies.

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  47. Employee8

    From The Elliott Wave Lives On: 8/6/08′

    With many of the indices we follow now in confirmed uptrends, it’s time to start looking for a top. It’s still a bear market. Remember, we sell bear market rallies and buy bull market corrections. Technically the uptrend still looks good to reach our 1327 pivot target. Remember our projection from SPX 1200: 1287-1240-1327. However, the market should not break below the 1261 pivot before it gets there. Speaking of bull markets. Let’s not forget commodities are still in a bull market, and have been in a correction for a month or longer. Crude traded close to our first downside target today. Expecting a bottom soon.

    The bottom in crude may mark the top in this market move …. how appropriate.

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  48. sniper6

    I must say, the last coupla days have been stellar blog-wise. Internet gold, do you hear me???!!!

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  49. TraderCaddy

    “Just know, they test drugs on dogs and sell them to people in China.”
    Question: Is it the drugs or the drugged dogs that they sell to the people? Perhaps it’s the dogs for their noodle bowls at lunchtime.

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  50. Anton Cigur

    To my Good Sir Mr. “The Fly,”

    As one gentleman to another, I embrace “The New Civility.”

    One quibble, however, with your recent post re: the honorable stock WX, hailing as it does from the progressive nation of China by way of the sunny shores of the Cayman Islands.

    It is my understanding that these good folk test drugs on people in China and sell them to dogs in the U.S.

    All felicitations,
    Anton Cigur

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  51. nullpointer

    hey employee8-

    those wave posts have not gone un-noticed. not a TA disciple, but interested none the less. i do believe in support/resistance and fib lines, cause the matrix algorithms use them.

    1325 neighborhood corresponds to resistance on the $SPX as well.

    thanks!

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  52. Anton Cigur

    Daniel,

    Upon the occasion of “back blogging,” if I may be so bold, it was with no small amusement that I discovered your post to the effect that, if I may paraphrase, “In a bizarro world, hamburgers eat people.”

    Your bon mot disguises the most succinct and trenchant characterization of this market I have yet encountered, Sir.

    In my own case, “The Hamburgler” has been attempting to make a “Happy Meal” of my “hindquarters” of late, if you will pardon my indelicacy.

    I shall look forward to your future contributions as opportunities for enlightenment.

    Very truly yours,
    Anton Cigur

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  53. Dinosaur Trader

    I went to bed too early. This post, is a classic.

    The only thing missing is a good fight with Ducati in the comment section…

    -DT

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  54. Dogwood

    Not sure the new version of The Fly is allowed to fight. Disagree amicably perhaps, but not fight. Still seeking a clarification of the rules on that though, so don’t quote me.

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  55. Anton Cigur

    Ms. Boca,

    Your evening posts still fill the air, like night-blooming jasmine, though it is only now that I am reading them.

    How our good host, Mr. “The Fly” could mistake your boldly feminine countenance as that of a mustachioed Puerto Rican gentleman perhaps speaks of the imprudence of opting for discount radio keratotomy, or at least confirms one’s Mothers warning that engaging in certain nocturnal activities, can, indeed lead to blindness. It is a misimpression he quickly repudiated, much to his credit, I am happy to see.

    It is my fervent hope that you are correct and that these dark days will soon reach their end and that “money,” if it is not too vulgar to speak of it, will return like some prodigal son or attention-deprived daughter to its rightful and, to borrow from our fine host, “Godly” place.

    Your late night fitfulness vexes me greatly, however. It is with no small degree of certainty that I can assure you of achieving the release you seek from the bonds of insomnia, though most likely it will come in the hours closest to dawn after a night of vigorous council. Of course you may reach me at any time once I establish an email account that ensures your privacy. “Developing,” in the words of our esteemed host.

    You understand that the “light touch” of “The New Civility” does not extend throughout the course of more intimate communications, do you not? Of course you do.

    Your servant, until such time as these roles reverse,
    Anton

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  56. Woodshedder

    Anton, lmao…Well done, my friend!

    In other news, it looks like my purchase yesterday of the double short consumer ETF, SCC, was a brilliant addition to an already blossoming portfolio.

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  57. The Secret

    ?

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  58. boca

    Ahhh, such delightful messages awaiting me while I partake of my morning coffee. I am extremely pleased and wish many felicitous transactions for all in the market today. My intuition tells me it will be so.

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  59. TraderCaddy

    Watching possible early daytrade scalps long setups happening in SMH,INTC,MU. Some Spitzer in and outs and could be done for the day or at least a few hours.
    Or it could be a Favre “stab in the back” so being careful for the first minute or so.

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  60. mrkcbill

    Anton, Can I have your email too?

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  61. anjing bau

    the XLF is limping higher on lighter volume…FRE’s bad news yesterday couldn’t persuade the sellers to come into the market…lets see what impact the AIG news has on the market today.

    I believe that the July 15 th low on the XLF needs to be retested.

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  62. boca

    MrKCBill …. easy now, I’m first in line.

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  63. ZenProfit

    My Dear Mr. Fly:

    In your most recent epistle you wrote:

    “Just know, they test drugs on dogs and sell them to people in China.”

    In what restaurants would one find the dogs that WuXi sells to the people?

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  64. mrkcbill

    Boca I understand….he’s pretty good with them fancy words and all. But sooner or later he’s going to say when you least expect it….Heads You Live, Tails You Die.

    Also one can only imagine how fucked up his hair must look in the morning. Words just won’t fix that shit.

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  65. boca

    The haircut is part of his charm haha.

    Anton, does this help? I mean, it’s readily available over the internets and all…

    http://www.amazon.com/gp/shops/index.html?ie=UTF8&sellerID=A2IZHPSC3CTGB8

    If anybody else calls, be forewarned, I probably won’t answer the phone.

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  66. Dinosaur Trader

    Hey wait… if this place is bizarro right now, that means I should start making money in 3….2….1….

    -DT

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  67. TraderCaddy

    Done with daytrading SMH,INTC,MU for awhile. Time for a nap.

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  68. Anton Cigur

    Mr. KC Bill,

    Perhaps it is best we correspond in the light provided by our beneficent host under these auspices until such time as I can discern your intentions, Sir. Your preoccupation with my hair as it appears in the morning leads me to believe you are an hairdresser, not that there is anything wrong with that.

    Perhaps I might suggest you exchange email greetings and photos with Mr. Bill Ackman who was recently observed proudly driving to City Hall in an ice cream truck in my own beloved San Francisco, a gay giraffe at his side.

    Perhaps you could persuade Mr. Shedder to memorialize your meeting in film?

    As to the matter of my penchant for coin-flipping as it relates to Ms. Boca, I assure you that the lady is well aware that such a toss can result only in happy outcomes as long as the coin offers the options of both “head” and “tail.”

    I bid you good day, Sir.
    A. Cigur

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  69. Anton Cigur

    My Dearest Boca,
    Yes, it does. But the internets, and even this site, is trolled by gutter folk who will exploit your openness. I promise to be in touch, but please don’t do that again.
    With stern affection,
    Anton

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  70. CubsRock

    Come Monday we can get naked and sell banks right?

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  71. boca

    OK Anton, I promise to behave in the future – at least here. 🙂

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  72. Earl of Sandwich
    Earl of Sandwich

    Not sure the new version of The Fly is allowed to fight. Disagree amicably perhaps, but not fight. Still seeking a clarification of the rules on that though, so don’t quote me.

    He sends his seconds now, dear boy, and seeks “satisfaction.”

    __

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  73. buylo

    Fly, you’re a good man deep down inside, even Mr. Bilderberg would approve, unfortunately he’s in a snow storm climbing K2 and is indisposed as a result.

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  74. While Rome Burns
    While Rome Burns

    sarcasm on[
    Bush Cites `Deep Concerns’ Over Human Rights in China
    http://www.bloomberg.com/apps/news?pid=20601087&sid=a0GukPZzYdnc&refer=home

    and more important financial news:

    Packers Send Favre to Jets, Ending 16-Year Career in Green Bay ]

    and that impacts me how?

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  75. JakeGint

    Trader Caddy,

    Wake up from your nap. SMH is a short at $29.32 (like, now).

    Jake

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  76. JakeGint

    Anton,

    W. regard to Mr. Ackman’s Giraffe:

    ________

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