Click to EnlargeCelgene (CELG) is a major biotech drug maker whose shares pulled back to support last week amid the broad market downturn. We’ve traded CELG successfully in the past in my Trader’s Advantage service, and it appears good to go again after being upgraded to Buy from Hold by Argus Research, with a target of $140. This is a valuation call, which makes a lot of sense. The company has been busy on the medical front, presenting data from its Phase III randomized controlled study of Apremilast in psoriatic arthritis last week. The study showed statistical significance in achieving the American College of Rheumatology endpoints for patients. Last Wedneday, the company announced a new $3 billion-share repurchase program.
The health care sector is still among the strongest on the board, and my research suggests that CELG will have a chance to trade back to the $125 to $130 zone. Buy CELG at $119.00 limit.
InvestorPlace advisor Jon Markman operates the investment firm Markman Capital Insight. He also writes a daily swing trading newsletter, Trader’s Advantage, which aims to capture profits of 15% to 40% and often as much as 100% to 200% in less than 90 days.
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