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

29-Jul-05. With an earlier lot of DYAX up by more than 11%, I added to my position with another lot.

DYAX reported earnings on Wednesday and blew past expectations. The chart is still strong, and, with the earlier lot, my average share price is now $5.68, giving me plenty of cushion in case of a pull-back.

• Price momentum (PPO) — still increasing
• Trend (ADX) — still strengthening, although buying pressure (+DI) is slipping a little
• Money flow (CMF) — fell off while earnings were digested
• Relative strength (RSI) — very strong
• Volume — higher than normal after earnings were reported before the market opened

Sell

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.