BioMarin Pharmaceutical (BMRN)
From Cabot Wealth Advisory 4/8/13 Sign up for free Cabot Wealth Advisory e-newsletter
It appears that the long-awaited market correction has begun; how long it will last and how far it will go are yet to be determined. Yet tracking individual stocks can still pay off, because I don’t think this bull market is finished. One strategy is to look for stocks hitting new highs, but the problem with that is that at times likes this, when people are running for safety, that can lead you to defensive stocks.
I prefer to look at growth stocks that had previously been strong, and that are holding up well in the face of potential selling pressures.
BioMarin Pharmaceuticals (BMRN), for example.
The stock looks rock-solid here, hanging around its 25-day moving average.
We last recommended the stock in mid-November in Cabot Top Ten Trader, where editor Mike Cintolo wrote the following:
“BioMarin specializes in rare genetic diseases, and currently maintains a portfolio of four approved treatments … The company also has a pipeline of very promising genetic treatments, in particular drug candidate GALNS, which is designed to treat people with Morquio syndrome—a rare genetic disorder that causes problems like abnormal heart and skeletal development …
Clearly, GALNS isn’t going to impact BioMarin’s bottom line any time soon, but with Wall Street already starting to price in the drug’s potential impact, investors would be smart to take a closer look at this rising biotech star.”Mike continued, “BMRN was off to the races last week in the wake of the GALNS news. The stock broke out above former resistance at the 44 level to trade in all-time high territory just below 50. Prior to the surge, BMRN shares were already headed higher in a steady uptrend along support at their rising 50-day and 200-day moving averages … Buying dips in the current market environment is recommended, while a stop loss on a trade below 44 should help limit losses.”
And that was great advice! Since then, BMRN has climbed from 47 to nearly 63, and for the past month it’s been trading between there and 60, pausing for a rest while the broad market gets a little crazy.
I think this is a decent entry point, so you could just buy here and cross your fingers. But if you’re serious, you’ll take a no-risk trial subscription to Cabot Top Ten Trader and get Mike’s latest advice on the stock. For details, click here.
|BioMarin Pharmaceutical (BMRN)
770 Lindaro Street
San Rafael, California 94901
|Index Membership: N/A
Full Time Employees: 1,089