Tuesday, April 29, 2008

DNA Conference Call Analysis Rings True

In our detailed analysis of the Psychology of the Genentech Call on Thursday April 10, we wrote: "We would wait for the Lupus studies to be announced within days and, since management sounded pessimistic on this front, buy shares on that potentially terrific pull back." The results of the lupus study were released today:

Study of lupus treatment fails to meet primary endpoint
http://www.marketwatch.com/News/Story/study-lupus-treatment-fails-meet/story.aspx?guid=%7BD2F355AB-D362-4A9A-A15C-0EE39524A53F%7D&siteid=msn

We are initiating Genentech Inc. (DNA) as a BUY at $68.70. The news of the failed Rituxan Lupus study presents a temporary set back for DNA, providing a perfect buying opportunity, especially with the catalyst of the ASCO scheduled for May 30th-June 3rd, in Chicago. Look at our DNA CC analysis (http://psychologyofthecall.blogspot.com/2008/04/psychology-of-genentech-inc-dna-q1-2008.html) to see why being long DNA from this day forward makes sense. Congratulations to our supporters who waited: CC psychology and patience remain two integral parts for your success with Genentech going forward.

3 comments:

Anonymous said...

Very Well done. Sue did sound negative after I listened. Will you be doing the MNST conference, write up for?

The Call Team said...

We will post a full MNST psychological analysis for you Thursday night. We are passionate in our beliefs that "WHAT" is said is NOT nearly as important as "HOW" it's delivered/said. Thanks for commenting.

Anonymous said...

rituxan for lupus failed, just as you guys called it, black and white in your CC analysis ..
keep it up, i'm long into the oncology conference in chicago..