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It's Good For A 216% Gain...


The Dynamic Wealth Report
March 22, 2010

by Robert Morris, Editor

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).

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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!

Take a look at what the stock’s done lately…

ITMN Chart

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!

***Editor’s Note*** If you’d like more stock ideas in the biotechnology sector with this kind of potential, you should take a look at Robert’s Biotech Supertrader service.

There are now a number of stocks in the portfolio that are awaiting news from the FDA.  If that news is positive, you know what could happen to these stocks!  Click here to get the details…

Sectors On The Move 

• Delivery Service Industry (Up 12.9%)

This isn’t an industry you hear from very often.  The delivery service group includes companies like FedEx (FDX) and United Parcel Service (UPS).  With the retailers showing strong gains, the product shippers are doing well.  I’d expect this trend to continue for some time.


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Issue Date:
 Monday, March 22, 2010


Notable Highs and Lows

•  Buffalo Wild Wings (BWLD) hit a 52-week high of over $49.  The bar is seeing robust business during the March Madness tournament!  They now have a market cap of just over $890 million.

•  Jos. A. Bank (JOSB) hit a new 52-week high of just over $49.  The clothing retailer is rebounding… must be a lot of people looking for jobs and dressing up.  They now have a market cap of just over $900 million.

•  PACCAR (PCAR) hit a 52-week high of just over $42.  The light duty truck manufacturer continues to climb in an improving economic environment.  The company has a market cap of just over $15 billion.


Quote of the Day

"A man cannot be comfortable without his own approval."

                        -
Mark Twain

 
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