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Celgene Corporation Message Board

  • investora2z investora2z Mar 22, 2013 8:30 AM Flag

    Volumes should be watched

    Several hedge funds (around 42) are holding long positions in CELG and there is an increase of 8% in ownership of such funds since the third quarter. The top names are D. E. Shaw's D E Shaw which has the most valuable position ($139M), and Legg Mason Capital Management which has a $108M position. Consequently, CELG is on a strong and secular uptrend, and has doubled since it made its 52 week low in June last year. The company, which is engaged in the discovery, development and commercialization of therapies designed to treat cancer and immune-inflammatory related diseases, has commercial stage products like REVLIMID, VIDAZA etc. It also gets revenues from licensing agreement with Novartis (royalties on FOCALIN XR and the entire RITALIN family of drugs), the sale of services through its Cellular Therapeutics subsidiary, and other miscellaneous licensing agreements. The special thing about these drug research and development companies is that they are usually dormant volcanoes for several years. There is lot of investment in the research / trial stage, and investors have to go through testing times. The long term chart of the company (since 1988) makes an intriguing glance. The way it has picked up from sub $1 levels (late 90s) to the $110 plus levels over the last two decades indicates the potential of such R&D companies. The returns are exponential, and the several milestones on the way to commercialization are triggers for upswings. Currently several companies are at the stage where CELG was in 2000. Companies like Senesco Technologies (SNTI) are also into research and development of drugs for cancer etc. The trials are progressing well, and it may start an exponential uptrend anytime. However, CELG which is making new highs all the time merits attention for its strength and resilience. Another interesting fact is that institutions hold 83% of the stock. The recent volumes (last few days) are not very robust so one has to be little careful.

107.52+0.07(+0.07%)Jul 22 4:00 PMEDT