Chris Lau
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Chris Lau in Value Stocks,

Tomorrow’s Moves: Friday April 8

Besides crying from not holding the following biotechs below, be happy it’s Friday.

1. Relypsa (RLYP)  +70% because this hyperkalemia drug maker is exploring a sale, after suitors expressed interest.

2. TransEnterix - TRXC -10.5%

3. Gap - GPS -13% (retail)

4. Intercept Pharmaceuticals, Inc. - ICPT +18%

5. Buy Yellen Calls

6. Consider locking in profits on Valeant Pharmaceuticals (VRX). Though a PT of $50 is possible, any deceleration in the stock’s bounce-back is bearish.

7. Still wonder why MannKind - MNKD – which has an FDA-approved drug, Afrezza, but cannot grow sales. Problem is simple. Company has ~ $77M in cash. Total assets of ~ $125M is falling. The company simply has no money to market its product.

MNKD also has no sales team. Did I mention that debt? The only way for MNKD to get the drug to market is to raise money via stock market ie share dilution. Per its 10K:

"We will need to raise additional capital to fund our operations, and our inability to do so could raise substantial doubt about our ability to continue as a going concern."

...even after a capital raise, opex will sky rocket:

"We expect to make substantial expenditures and to incur increasing operating losses in the future in order to continue the commercialization of AFREZZA, after the termination of the Sanofi License Agreement is effective."

8. Have a beer. It’s Friday

9. Have another beer.

10. Join this value investing group. It’s free.

11. …? Post your move below …