Dyax (DYAX)
Company
"Dyax Corp. is a biopharmaceutical company focused on the discovery, development and commercialization of antibodies, small proteins and peptides as therapeutic products for unmet medical needs, particularly in the areas of inflammation and oncology. Dyax currently has two recombinant proteins in phase II clinical trials. DX-88 is in phase II trials for the potential treatment of hereditary angioedema in collaboration with Genzyme Corporation. Dyax is also evaluating DX-88 in phase I/II studies for its potential use during open-heart surgery, specifically on-pump CABG (coronary artery bypass grafting) procedures. The Company's second clinical compound, DX-890, is in phase II clinical trials for the potential treatment of cystic fibrosis." (company website)
Buy
18-Jul-05. DYAX has been in a sharp downtrend for most of the past twelve months, but bottomed at the beginning of April (see sidebar). It is now in the second attempt to push significantly past the $5 level.
- Price momentum (PPO) — growing sharply in past three weeks
- Trend (ADX) — strengthening sharply since end of June
- Money flow (CMF) — strongly positive
- Relative strength (RSI) — increasing steadily, but now over-bought (StochRSI)
- Volume — fairly constant with up-days being higher than average volume
Sell
Bottom line-8%
3-Oct-05. I had such high hopes for Dyax. And for the first three weeks, my expectations were being fulfilled, and I bought two additional lots. But then DYAX's fortunes reversed, and it has been bouncing along between $5.30 and $6.00. Although it opened today above the 50-day moving average, it could not hold the gain and started on down, triggering a stop-loss order set for $5.40.
I did make a small profit on the first lot, but it was wiped out — and more — by the loss on the second and third lots.
