It’s Good For A 216% Gain…
Have you seen the recent news? InterMune is soaring as their lung disease drug gets FDA approval! I know a whole bunch of Dynamic Wealth Report readers are smiling all the way to the bank right now!
In January 2010, we published a Special Report entitled, How One Stock Can Make You A Millionaire (and where the next one is).
I know many of you read this report as soon as it came out. It was downloaded more than 25,000 times the day we released it! After all, many of you are crazy about biotech stocks… just like me.
The report illustrates a powerful biotech trading strategy.
A strategy that often captures huge gains in stocks (doubles, triples, or more) literally overnight!
And, it’s a strategy we’re employing right now in Biotech Supertrader.
At the end of the report, I recommended three exciting biotechs to help you get started with this strategy. One of those picks was InterMune (NASDAQ: ITMN).
ITMN is developing pirfenidone for a chronic lung disease called idiopathic pulmonary fibrosis. The often fatal disease affects over 5 million people worldwide. And, there’s no cure or satisfactory treatment.
This wasn’t an “official” trade in the service, anyone could have bought the stock for themselves. I know many of you bought shares for your own account.
Congratulations to all of you who moved quickly and scooped up these shares! You’re now sitting on a huge profit!
The shares skyrocketed over the last week on news the FDA advisory committee voted 9-to-3 to recommend approval of the lung cancer drug.
Investors are clearly excited over the potential that pirfenidone holds.
When I wrote about ITMN, it was trading around $13 per share. Today, the shares have already traded as high as $41.20. That’s good for a 216% gain!
A day after the news on pirfenidone was released, two “Wall Street” investment banks upgraded their research rankings on the company.
This helped propel the stock even higher.
All in all, this trade worked out just like we thought it would. We identified the key drug with a rapidly approaching milestone. We found the company that owned the drug and took a position in the stock early.
This allowed us to get in at rock bottom prices.
Despite questions about research results and efficacy, the drug passed through the FDA gauntlet and received the recommendation of approval. News of the successful run caused the stock to rocket higher.
It’s not a bad two month trade if you ask me.
Now that most of the gain has been captured, the risk reward profile on the stock has changed. No sense giving up our big gains, just to collect pennies of upside.
Now’s the time to lock in our big gain… it’s never a bad idea.
While InterMune may be on the path to bigger and better things, it’s time for us to say goodbye to this pick!
Category: Stocks
