Human Genome Sciences (HGSI)

Company

HGSI 1-year chart HGSI 1-year chart

"The mission of HGS is to apply great science and great medicine to bring innovative drugs to patients with unmet medical needs.

"The HGS clinical development pipeline includes novel drugs to treat hepatitis C, lupus, inhalation anthrax, cancer and other immune-mediated diseases. The Company's primary focus is rapid progress toward the commercialization of its two key lead drugs, Albuferon® (albinterferon alfa-2b) for hepatitis C and LymphoStat-B® (belimumab) for lupus. Phase 3 clinical trials of both drugs are ongoing.

"ABthrax™ (raxibacumab) is in late-stage development for the treatment of inhalation anthrax, and the Company is on track to begin the delivery in fall 2008 of 20,000 doses of ABthrax to the Strategic National Stockpile under a contract entered into with the U.S. Government in June 2006. HGS also has three drugs in clinical development for the treatment of cancer, including two TRAIL receptor antibodies and a small-molecule antagonist of IAP (inhibitor of apoptosis) proteins. In addition, HGS has substantial financial rights to three products in the GSK clinical development pipeline." (company website)

HGSI 6-month chart
HGSI 6-month chart

Buy

31-Jul-08. The shares of HGSI plummeted in late January, then reached bottom in March. At the beginning of July the shares gave up most of the gains since the bottom. Since then, however, HGSI has been rising steadily. When HGSI reported a loss of 55¢ yesterday after the bell, they missed Expectations by a penny, but also reported quite a bit of good news at the same time. This morning the shares took off, then fell back to near yesterday's closing levels.

  • Price momentum (PPO) — fall slightly since the recent peak
  • Relative strength (RSI) — falling off to near neutral
  • Trend (ADX) — weakening slightly, but still strong
  • Volume — much less than 6 months ago, but stabilizing

I attribute the weakening of the indicators to the pull back off the recent peak at $7.18 and in anticipation of earnings.

Based on technical analysis, MarketEdge calls HGSI a "buy" in a "weak upward trend."

Sell

gain Bottom line
17%

15-Aug-08. I'm tired of losing money! So, after watching HGSI stretch out the upper Bollinger band for a week, I decided to take profits. Yes the chart is strong. Yes it has crossed above the 200-day moving average. Yes, yes, yes. But it is also running out of steam, a little: it is overbought; yesterday was a down day; volume has been light; buying pressure (+DI) is weaker for the third day. I'm taking this as signs that a pull back is likely. Of course, I could be wrong, as I was with IKN, but at least the profits are in the bank.