SLXP - Salix Pharmaceuticals, Ltd. $15.06 (+0.06)

Sunday's Comment:

Salix Pharmaceuticals, Ltd. is a pharmaceutical company that acquires and develops brand name, prescription pharmaceutical products used to treat gastrointestinal diseases. SLXP went public on November 20th. The stock began trading at $10 but it slipped below its IPO price to an all-time low of $5.75 just nine days later. Since then, shares of SLXP have performed rather nicely. On Friday, the stock traded to an all-time high of $16.31, which represents a 63% gain from the IPO price and a 184% gain from the November 29th low. We believe that SLXP is in the early stages of rally after moving to NASDAQ National Market from the SmallCap Market, so the stock could see new highs in the near future. From a technical perspective, support is the 5-dma at $14.49 with additional support at the 10-dma, currently at $14.13. Resistance is the February 22nd intra-day high of $15.50 and then $16.31, Friday's intra-day high. A bounce off of $14.49 or a move above $15.50 on midday volume of at least 60,000 shares may be possible entry points. One caveat, this can be a volatile stock since it occasionally trades on light volume. We plan to set stops at $13.50 as downside protection.

Picked on April 8th @ $15.06 Change since picked +0.00 Stop Loss @ $13.50

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