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Hot Stock Confidential members book 20%+ on EBS in 3 weeks!

Posted August 27, 2008

After booking 26.68% on Synta Pharmaceuticals (SNTA:NASDAQ) and 41% gains on Nymox (NASDAQ:NYMX) earlier this month, Hot Stock Confidential members were instructed to sell Emergent Biosolutions (EBS:NYSE) at $12.65 and above and book short-term gains of 20%.

by J. Christoph Amberger

Baltimore — (TFN): Remember our anti-anthrax play from 6 weeks ago? This was our last free TFN Hot Stock Pick of the Week: Buy this preparedness placebo stock in view of FDA approval, which I also released to subscribers of Hot Stock Confidential on July 17. My recommendation was to buy Emergent Biosolutions (EBS:NYSE) “on pullbacks below $10.50, with a potential of 20-30% price spikes as trial results are released.”

Of course, with anthrax once again in the media at the time, the stock merrily kept on going upward, outside of this recommended entry price, hitting $14 on August 6. Our first chance to buy EBS at the recommended price level occurred on August 7. Since then, the stock has recovered nicely, to $12.65 today.

Here’s how I look at this: Emergent Biosolutions meets all the criteria of a “Damn Good Stock” (DGS). It has a lock on a unique product and knows how to grease the tracks of its market: According to a recent disclosure form, it just spent $560,000 lobbying the federal government in the second quarter. With a political sea-change on the way — which in all probability will emphasize the illusion of “preparedness” against terror strikes in favor of pro-active measures of preventing them — I see burgeoning demand for its anti-anthrax vaccines for 2009 and beyond.

But this is a volatile market (as if you hadn’t noticed yet). And a 20% profit generated on the upswing of a volatile stock needs to be booked. There is a chance you will make more on EBS over the next couple of days. But we like to play it safe for the record. We will be buying back into the stock when prices drop again.

For the time being, sell EBS at prices above $12.65 and book 20% gains for you Hot Stock Confidential DGS portfolio.

That brings our average gain on our closed positions to 30.4%, with an average hold time of 19 days. Not bad for a service we only launched six weeks ago, wouldn’t you agree?

And while we’re on the subject of Hot Stock Confidential. I just finished filming tomorrow’s HSC Hot Stock Pick of the Week recommendation… I have found a company that’s grown sales by 56%, its net income by 37% — and stands to make money on almost every single car built in the fastest-growing motor vehicle market in the world… that’s 7 million this year… and 11 million by 2011.

The best part about it? You can still buy shares below $10!

Our Hot Stock Confidential members will be getting this recommendation tomorrow morning. Which means there’s still plenty of time for you to join them!

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Posted by J. Christoph Amberger · Filed Under US Stocks and Markets 

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