Watch Powderject (PJP)...

Riz

Experienced member
1,266 5
Powderject (PJP), once high flying Pharmaceutical has seen its share price drop from well over 700 in last October to hover around 500 till they dipped further to 353 in last 2 weeks amid longstanding rumours and concerns about Celltech’s (CCH) commitment to its joint venture with PJP, the Powderject Lidocaine pain relief product....

This even caused a sell recommendation on Monday by ING Charterhouse on Monday...

However a PJP spokesman said thursday afternoon that the agreement between Celltech and Powderject still stood...and that that Powderject Lidocaine was on course to begin Phase III trials later this year...

PJP spokesman immdediately found support from JP Morgan analyst Samir Devani who said that fair value for Powderject is 750-775...Devani also said: ‘Few companies have the opportunity to set a pharmaceutical industry standard – we believe Powderject is one of them.’

Further support for PJP came from Sharewatch in the Sunday Times today rating PJP a buy following the support by JP Morgan late last week which reckons the share's real value is about twice. And assessing the share " good speculative punt on a shortish time scale.."

Price stopped dropping on Friday for the first time since March the 7th and adding 1.5 to 354...

Chartwise, the price's been going down below the lower BB for quite a while...now seems to be moving to cross over...while the converged stochastics K and D moving flat at the completely oversold area at the same time...RSI also flat just above 0 line all indicating oversold for a while...MFI still heading down to hit the 20 line and OBV just ticked up also at the oversold area...

There is a good chance that 353 might be the bottom where PJP could start a fast upward movement in the short time...long term of course depends on further good news...

Overall it's worth to watch with a view of benefiting from a short term upward movement in the share price keeping in mind that phamaceuticals have been quite volatile lately...

Riz
 
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Riz

Experienced member
1,266 5
Up today 22.5 (6.4%) to 376.5 ...as it said it had secured a two-year contract to supply tuberculosis (BCG) vaccines and diagnostic tests to the department of health. Both JP Morgan and WestLB Panmure reiterated their “buy” stance...Looking good

Riz
 

Riz

Experienced member
1,266 5
Yes, 345 did prove to be the bottom from where PJP bounced all the way to 468 only to pull back to 392...been rising ever since, jumping for the last couple of days to 462 thus breaking through last resistance level...

Have a look at the chart all MAs ticking up in correct order, strong RSI and stochastics up...the only concern is that last rally was on quite thin volume, this may cause some retracement if not supported next week...still with the way the chart is shaped up, retesting of 498 is not less likely...

Certainly worth to watch...

Riz
(no financial advice intended)
 

Riz

Experienced member
1,266 5
Up +10 (2.2%) at 465...retraced as predicted only to form a higher low at 435 and to bounce back to last resistance level at 465...it was worth to get in when it started bouncing...still now right at the resistance level with RSI sharply ticking up and the company reporting on Tuesday certainly worth watching...

Riz
 

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Riz

Experienced member
1,266 5
Up +24 (4.7%) at 535..

PJP heading for year high it formed in January at 582.5 breaking through all resistance level on its way...

In the mean time an executive director sold 150,000 shares at 500 making a profit of £691,200 (citywire)...

Goldman Sachs reiterated its ‘market outperformer’ increasing its price target from 720 to 800...

Powderject's finals on Tuesday showed a sharp rise in turnover from £2.8 million to £40 million, aided by the £63.5 million purchase of Evans Vaccines last year. Pre-tax losses widened a little from £18.4 million to £20.6 million thanks to increased spending on product development. (citywire)

But for me I think that's enough of chasing PJP as director started selling and a rise of 190 in 3 months is bound to bring some sharp retracement at some point...got in and out a few times all ending +vely, so time to look elsewhere...

Riz
 
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Riz

Experienced member
1,266 5
Retraced by more than 100 at 432.5 now on their plans to move away from the drug delivery arena entirely and concentrate on vaccines as well as director sells I mentioned earlier...

Still strong growth forecasted on increasing sales and margin of vaccines will soon start a turn round I believe...the sell looks overdone, PJP is now worth to be on the watch list for the next bounce up that is bound to occur after the fall stops...

Riz
 

Riz

Experienced member
1,266 5
PJP still falling...today -8.5 at 406.5...only RSI started forming a flat base and stochastics indicating total oversold...still watching for the price to settle and consolidate for reversal...

Riz
 

Riz

Experienced member
1,266 5
Bounced up the moment it stopped falling, ending the day up +23.5 (5.8%) at 430...anyone managed to get it in?

Riz
 
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