Big Profits From A High Flying Penny Stock
Do you remember the last time you doubled your money on a stock… in one day? How about the last time one of them tripled before the closing bell rang?
Trust me, having a huge one-day winner is absolutely exhilarating. (Not to mention a huge boost for the ole trading account!)
My Penny Stock Breakouts subscribers can back me up on this point.
Earlier this week, one of my recommendations nearly quadrupled – in just one day. That’s 278% in less than 24 hours!
As you can imagine, my subscribers are absolutely overjoyed. But, don’t just take my word for it. Read this excerpt from one of the hundreds of e-mails we’ve received about the trade:
“I was excited about seeing my email yesterday with a suggestion to sell half my holdings in a stock you recommended buying. A gain of over 300% paid for my costs of both subscriptions I had purchased this year…. I am grateful I purchased my subscriptions to Penny Stock Breakouts and Penny Speculator…”
So, what was this amazing trade?
Here’s a quick recap for you.
In early July, I recommended a short-term trade on biotech stock Human Genome Sciences (HGSI). I believed we could make a huge profit from an upcoming event.
You see, HGSI was about to release very important clinical trial results for their new lupus drug. I knew that if the results were good, the stock was going to soar. (More on that in a moment.)
First, a little background on lupus.
Lupus is a painful, and sometimes deadly, autoimmune disease. It causes the body’s immune system to attack its own tissues, blood cells, and vital organs. Roughly 1.5 million people in the U.S. and 5 million worldwide suffer from some form of it.
But, HGSI is about to make life for some lupus patients a whole lot better.
The company’s new drug, BENLYSTA, could become the first FDA approved treatment for lupus in 50 years. This amazing drug works at the cellular level to control the disease.
The science behind it is mind-boggling.
And, it’s a potential cash cow. Some estimate BENLYSTA could generate worldwide sales of $3 billion a year. Now, that’s what I call a blockbuster drug!
So, getting back to the trade, here’s the key.
With a bit of research, I discovered HGSI was going to report late stage clinical trial results for BENLYSTA sometime in July. I realized that if the results were good, the stock would skyrocket.
And, I had a feeling the results would be good.
Here’s why.
In June, HGSI published results from a multi-year continuation trial of BENLYSTA. The data showed the drug was safe and reduced patients’ symptoms. I couldn’t see how the upcoming data would be any different.
This past Monday, HGSI announced the much awaited results.
Surprise, surprise, they indicated that BENLYSTA is a complete success.
More than half the patients showed significant improvement in their lupus symptoms. And, the disease isn’t progressing beyond their originally affected organs.
As you know by now, the stock skyrocketed on the news.
When I recommended it, HGSI was trading at $2.88 a share. On Monday, the stock jumped to $12.51. That gave us a huge one day return of 334%. And then on Tuesday, the stock went even higher hitting $14.97. Good for a whopping 420% gain!
That’s more than five times our money in just two weeks!
So, what’s next for HGSI?
Several upcoming events could send the stock even higher:
- Final Phase III clinical trial results for BENLYSTA in November (should be just as good as today’s results)
- Application for FDA approval of Albuferon (treatment for Hepatitis C) this fall
- Application for FDA approval of BENLYSTA in early 2010If approved, first Albuferon sales in late 2010
- If approved, first BENLYSTA sales in early 2011
- Further sales of ABthrax (anthrax treatment)
- Two potential blockbuster cancer drugs in mid-stage development
- Two drugs in early-stage development (heart disease and diabetes treatments)
With all of these potential catalysts happening soon, I think HGSI is likely to trend higher from here. I see the stock trading up to at least the mid to high teens.
Believe it or not, I didn’t write you today to brag about this amazing trade. Rather, I wanted to give you some insight into some things I look at before making a recommendation.
Sometimes they work out, sometimes they don’t. But in this particular case, the end result was nothing short of spectacular.
Congratulations to all of our readers who bagged this winner. And, for those who didn’t, I invite you to take a close look at my Penny Stock Breakouts service.
Category: Penny Stocks
