ENZN - Enzon $75.25 +2.03 (+$4.25 this week)

The biotechnology stocks are flying, which is why we feel it is appropriate to add Enzon to our play list. The company owns a proprietary technology that has proven effective for the treatment of a rare immunodeficiency disease known as the Bubble Boy disease. In addition, ENZN has two products in clinical development and has formed over 15 strategic partnerships to further develop products using its technology. Last quarter, ENZN approached profitability with a loss of only $0.03, which was a penny above consensus estimates. The company will report its next quarterly results in early December and is expected to post a loss of one penny. With so many biotechnology firms still unprofitable, the fact that ENZN could soon turn a buck is a positive development. The company has never split its stock, but with a stock price in the $70's, a split announcement becomes increasingly likely. However, ENZN will have to increase its number of authorized shares if it wants to split its stock 2:1. Earlier this month, ENZN's stock successfully tested its 50-DMA. Today, the stock established a new high at $77.50, which is an exceedingly rare event in this market, which could attract the attention of momentum investors. Be careful, though, because the stock is fast approaching a short-term overbought condition. Longer-term technical indicators look pretty good. The MACD issued a buy signal last week. OBV and Money Flow are both solid and are trending higher. We are setting our initial stop at $71.00, and we will raise this stop if the stock keeps moving higher. The short-term resistance is the newly established high at $77.50. Most likely, we will exit this position either through a stop or immediately following a split announcement.

Picked on October 24th @ $75.25 Change since picked +0.00