Buying Momentum on Cypress Bioscience (CYPB)

The stock is currently trading around $8 per share. It's only half of its value in cash ($154 million) and zero debt. CYPB is projected to burn cash $30 million for 2008.

According to Associated Press last week, shares of Cypress Bioscience Inc. surged Monday, as analysts said the Food and Drug Administration's approval of Eli Lilly & Co.'s antidepressant Cymbalta as a treatment for fibromyalgia bodes well for a similar Cypress drug.

Lilly said the FDA agreed to expand the use of the company's fastest-growing drug, Cymbalta, to include the chronic pain disorder fibromyalgia. The drug already is approved for diabetic nerve pain, major depressive disorder and generalized anxiety disorder.

Fibromyalgia affects about 5 million Americans. Researchers believe its cause may be related to genetics, stress and changes in brain and spinal cord chemistry and that it leads to increased pain sensitivity.

Jefferies & Co. analyst Adam Walsh said Cymbalta's approval bodes well for Cypress' chance to get its drug milnacipran approved, given that both drugs are in the same class and have similar safety profiles.

The FDA is due to make a decision on milnacipran in Octover, and right now, Wall Street is expecting a six- to nine-month delay pending possible agency review of the drug's third late-stage trial and blood pressure study. But after Cymbalta's approval, Walsh thinks chances remain good for "first-pass" approval in October.

Walsh backed a "Buy" rating and $30 price target on the stock, saying that if milnacipran can capture just 1/6th of the nation's fibromyalgia patients, sales could climb above $1 billion.

Friedman, Billings, Ramsey analyst David Amsellem said that while elevations in blood pressure and heart rate generally are higher for patients taking milnacipran than Cymbalta, the differences aren't meaningful and haven't resulted in adverse clinical consequences in trials or in the decade the drug has been on the market in Europe.

Amsellem maintained his "Outperform" rating and $22 price target, saying the possibility of a major delay is limited and the possibility of an on-time approval is strong.


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Suncor Energy, Inc. (SU) is Ready to Rebound

SU is ready to rebound while it reached on the support line at $55 and $57. I also see an ascending triangle formation that signs SU is on upward trend. Lets see on the chart below :



Please Note!

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Lets Consider to Buy Peabody Energy Corp. (BTU) and other coals

Sell-off pressure on coal mining on the last week was driven by worries amidst deteriorating economy. But a Citi's Analyst wrote, "This [sell-off] seems profit-taking amid a deteriorating economy, and the 'End of the beginning, not the beginning of the end'". He upgraded BTU and Arch Coal (ACI) from "hold" to "buy".


Energy Department estimates that electricity from a carbon-capturing plant with sequestration will cost 8 cents to generate one KWH in today's money by 2016. That figure does not take into account any benefit from selling carbon credits or any revenue from selling carbon dioxide. The same study projects a cost of 6 cents per KWH for a conventional coal plant, 7 cents for one fueled by natural gas, 6 cents for nuclear reactions and for wind, and 29 cents for solar (after subsidies). The feds estimate that a plant like Summit's, capturing 60% of carbon, would have to sell its CO 2 for $42 or more per ton to be competitive with 6-cent electricity from a conventional coal plant.

How will the anti anthracite crowd react to a plant that spares the atmosphere only three-fifths of its waste gas? While 600 conventional coal plants currently generate half the nation's electricity, new projects are in peril: Of the 114 proposed plants, 67 still await permits. Protests come with price tags. Peabody Energy (nyse: BTU - news - people )'s 1,600mw Prairie State Energy Campus in Illinois was projected to cost $2 billion and take four years to build. Battles with the Sierra Club dragged on for six years before the plant was cleared for construction--but at a cost of $3.5 billion.


Please Note!

This is generally never true. Before buying or selling any asset you should do your own research and reach your own conclusion. See my Disclaimer on the bottom for more information.

You are welcome to republish this article, or any portion thereof.
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Frontier Oil (FTO) is Ready to Go Up on Takeover Rumor

Recurrent takeover rumors appear to be guiding the options action in Frontier Oil on last Thursday. There were trading 9 times as often to calls as to puts, consistent with the giddy action of a takeover rumor stock. This is an indicative of noteworthy action in the stocks in the near future.

FTO's refineries are built tough, with stainless steel catalytic crackers and cokers that cook the crud into gasoline, diesel, jet fuel and $30 a barrel in profit. It can refine oil from producers in western Canada which harder to be refined because it's gooey, acidic and high in sulfur. Last year FTO netted $500 million on revenue of $5 billion, giving rise to an industry-leading 49% return on capital.

For five years oil refiners have been coining money, as capacity fell just a little short of demand. Whatever the price of crude, the gasoline makers were able to tack on a fat refining spread. Frontier's profits peaked last May, when the fuels cooked out of each heavy, sour barrel at its Cheyenne, Wyo. plant sold for $75 more than the cost of the crude.

According to my technical analysis below, there are bullish reversal signals on the FTO charts such as falling wedge and support lines.



Please Note!

This is generally never true. Before buying or selling any asset you should do your own research and reach your own conclusion. See my Disclaimer on the bottom for more information.

You are welcome to republish this article, or any portion thereof.
Please, cite the actual/original source. I would be grateful if you could link back.