by Sam Collins | August 23, 2013 1:15 am
NPS Pharmaceuticals (NPSP) — I first recommended NPSP on Nov. 26, under $10, as a trade or a long-term buy. This small-cap biotech company develops therapeutics for gastrointestinal and endocrine disorders, as well as neurological diseases.
On Dec. 21, one of its major products, Gattex, was granted FDA approval to treat short bowel syndrome (SBS). And on Wednesday, a survey by Oppenheimer indicated physicians will be recommending Gattex more over the next three years. Oppenheimer raised their target to $28 from $19.
The stock has been a fabulous performer for us, rising 159% since my initial recommendation. But with negative earnings expected to continue and no big news catalysts in sight, I suggest cashing in on this triple-digit percentage winner.
If you own NPSP, sell it for a profit or write options against your position. With the overall market due for a correction, it is time to take profits on big winners.
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