Hollis-Eden Pharmaceuticals (HEPH)

Company

"Hollis-Eden Pharmaceuticals, Inc. is developing a proprietary new class of small molecule compounds that are metabolites or synthetic analogs of adrenal steroid hormones. These compounds, designed to restore the biological activity of cellular signaling pathways disrupted by disease and aging, have been demonstrated in humans to possess several properties with potential therapeutic benefit - they regulate innate and adaptive immunity, reduce nonproductive inflammation and stimulate cell proliferation. The Company's lead product candidate, NEUMUNE(TM) (HE2100), is entering late-stage development for the treatment of Acute Radiation Syndrome (ARS), a life-threatening condition resulting from exposure to high levels of radiation following a nuclear or radiological incident, and is being explored for use in combating healthcare-associated infections. Hollis-Eden also is profiling optimized second-generation compounds for potential clinical development in a broad spectrum of therapeutic categories including hematology, metabolic disorders, autoimmune disorders, pulmonary diseases, oncology and infectious diseases." (company website)

Buy

6-Sep-06. In August, Hollis-Eden broke out of a year-long downtrend (see sidebar), turning the 50-day moving average up again, and it has just crossed over the 200-day average.

Price momentum (PPO) — slowed after hitting peak at $7.25
Trend (ADX) — strong, well above the threshhold (20)
Money flow (CMF) — strong flow into the stock after a period of strong out-flow
Relative strength (RSI) — neutral again, after a long period of weakness and then strengthening
Volume — break-out was on heavy volume

What all this should add up to is a consolidation coming to an end. Should.

Sell

Bottom line
0%

14-Sep-06. I guess HEPH isn't done consolidating yet. It got a boost from news that results of clinical trials were encouraging, but it didn't seem to last. Yesterday I decided to bail out if I could get $6.40, a price that would cover my trading costs and yield enough profit for a small coffee at Starbucks.

The trade actually executed in after-hours trading, the first time that has ever happened.