Enzon Pharmaceuticals (ENZN)

Company

"We are a biopharmaceutical company dedicated to the development and commercialization of therapeutics to treat patients with cancer and other life-threatening diseases. Our specialized sales force markets ABELCET®, ONCASPAR®, ADAGEN®, and DEPOCYT® in North America. In addition, we also receive royalties on sales of PEG-INTRON®, marketed by Schering-Plough Corporation, and MACUGEN®, marketed by OSI Pharmaceuticals and Pfizer Inc. Our product-driven strategy includes an extensive drug development program that leverages our proprietary technologies, including a next-generation PEGylation platform that utilizes linkers designed to release compounds at a controlled rate. Internal research and development efforts are complemented with strategic initiatives, such as partnerships designed to broaden our revenue base or provide access to promising new technologies or product development opportunities." (company website)

ENZN stock chart

Buy

8-Dec-05. Enzon has been bumping along between $6 and $8 for most of this year. But in the last two weeks it looks to have broken out.

  • Price momentum (PPO) — sharp increase
  • Trend (ADX) — strengthened sharply, nearing the threshhold (20)
  • Money flow (CMF) — neutral from strongly negative
  • Relative strength (RSI) — much stronger
  • Volume — five consecutive up-days on normal or higher than normal volume

Sell

loss Bottom line
-7.5%

6-Feb-06. "Bye-bye." I decided to cut ENZN loose today when it continued the latest downward steps by breaking through the lower Bollinger band and moving farther below the 200-day moving average. Those are seldom good signs.

ENZN has been losing momentum (PPO) almost from the day I bought it. I took heart a few weeks ago when it geysered upward on huge volume for no apparent reason, pushing buying pressure (+DI) above selling pressure (-DI) and strengthening the trend (ADX). But at the same time money continued to flow out of the stock (CMF) and relative strength (RSI) took a hit at the end of last week.

In short, I see no reason to go down with a sinking ship.

ENZN 1-year chart
ENZN 1-year chart