Cell Genesys (CEGE)

Company

"Cell Genesys is focused on the development and commercialization of novel biological therapies for patients with cancer. The company has a broad portfolio of clinical stage product development programs, an extensive technology and patent estate and a strong balance sheet. The company is conducting clinical trials in multiple types of cancer utilizing two of its three product platform technologies-GVAX® cancer vaccines and oncolytic virus therapies. Cell Genesys' antiangiogenesis technologies, the company's third product platform, are being evaluated in preclinical programs for multiple types of cancer. Cell Genesys continues to hold an equity investment in Ceregene, Inc., its former subsidiary which is focused on gene therapies for neurodegenerative disorders and an equity interest in its former subsidiary, Abgenix, Inc., an antibody products company." (company website)

Buy

1-Aug-05. I took an earlier position in CEGE that I feared was a mistake and took a loss. The picture now is enough different that I think it may be work out better. The downtrend is now reversed for sure (see sidebar) and there is a two-month uptrend in place.

• Price momentum (PPO) — sharply picked up again after earnings report
• Trend (ADX) — beginning to strengthen again, with buying pressure (+DI) crossing sharply above selling pressure (-DI)
• Money flow (CMF) — steady improvement for entire month of July
• Relative strength (RSI) — strengthening from neutral
• Volume — picking up ever so slightly, with big volume today

Sell

3-Oct-05. CEGE's 50-day moving average has been falling for the last couple of weeks, and the up trendline was broken last week (see sidebar). Although it looks like it may be starting to recover, I decided to put in a stop-loss order that would trigger if CEGE traded less than $5.50. At the time, CEGE was trading well above that level. The fact that it fell back indicates that the recovery may be weaker than it looks. Because I had only 500 shares, the dollar amount of the loss is not that great, and I can put the remaining capital to work with one of the other stocks in my portfolio that is moving up strongly.