Breakthrough in Cancer Treatment says FDA

Crista Huff
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Posted: Jun 04, 2013 12:01 AM
Breakthrough in Cancer Treatment says FDA

Stocks in the News is produced by Ransom Notes Radio and Goodfellow, LLC. Crista Huff manages Goodfellow LLC, a website that recommends outperforming stocks using fundamental and technical analysis. 

Stock number one is: 

Merck & Co. Inc., (SYMBOL: MRK) and the headline says:

Merck melanoma drug shrinks tumors in 38 percent of patients -- Reuters

Merck’s experimental treatment for advanced melanoma  helped shrink tumors in 38 percent of patients, while 10% of patients saw their cancers disappear.  The FDA called the Merck drug “a breakthrough therapy."  Late-stage clinical trials will begin in the third quarter.

Merck's earnings per share are expected to fall 8% this year, with revenues down 3%.  The dividend yield is 3.51% and the PE is 14.

The stock broke out of a medium-term trading range last June, stabilized, and appears ready to break out on the upside again.  While not overvalued, there’s no compelling reason to buy Merck shares.

Our Ransom Note trendline says:  STAY ON THE SIDELINES.

MRK Chart

MRK data by YCharts

Stock number two is: 

MannKind Corporation, (SYMBOL: MNKD) and the headline says:

Inhaler could replace diabetic injections – The Daily Mail

Biopharmaceutical maker MannKind Corporation has developed a dry-powder insulin inhaler device, called Afrezza, for maintaining blood glucose levels in diabetes patients.  The new treatment, which completed late-stage testing, has been found to be equally effective in treating diabetes as daily needle injections.

MannKind has no recent history of earning a profit, and is expected to continue losing money for at least the next three years.

The stock price has had a big run-up from all-time lows a year ago.  There’s strong price resistance at $10.  Shareholders should use stop-loss orders to protect profits.

Our Ransom Note trendline says..... STAY ON THE SIDELINES.

MNKD Chart

MNKD data by YCharts

Stock number three is:

Synta Pharmaceuticals Corp., (SYMBOL: SNTA ) and the headline says:

Synta drug shown to extend lives of certain lung cancer patients --- Reuters

Synta Pharmaceuticals’ experimental lung-cancer drug, combined with chemotherapy, helped boost survival in 32% of patients with an advanced form of the disease, vs. patients who only received chemotherapy.  Lung cancer is the leading cause of cancer death in men and women.  A bigger trial is now under way which could lead to FDA approval in about two years.

Synta has no history of earning a profit, and is expected to continue losing money for at least the next three years.

The stock price fell dramatically through support levels today.

Our Ransom Note trendline says....  AVOID SYNTA PHARMACEUTICALS.

SNTA Chart

SNTA data by YCharts