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The Week Past
Well, we had the Dow down last week by finishing -2.4% for the week, the Nasdaq finished the week -8.2%, The S & P 500 was -4.0%, and the Russell 2000 was -3.2%. All traders should pay closer attention to their mental stops or plan on riding out some bumps along the way.
This last week was a medium downturn for the Dow and a medium upturn for the Nasdaq. We believe margin is fine to use if you DO NOT margin all your holdings. We feel it would be prudent to have 1/2 of an account on margin at this time.
We believe that a long-term or swing-trader should have 1/2 of their portfolio on margin at this time. A daytrader could have some margin of up to 3/4 of his holdings if you use tight stops. We want short-term traders to have their stops in at –5%. We suggest using -20% stops on your long-term positions at this time.
Well, the Dow was down medium and the Nasdaq finished the week down medium.
Last Weeks Economic News
The Economic reports coming this week are: on June 13th at 8:30 AM EST the International Trade report will be released and at 8:30 AM EST the Retail Sales report will be released; on June 14th at 8:30 AM EST the Business Inventories report will be released, at 8:30 AM EST the Initial Claims for joblessness report will be issued, and at 8:30 Am EST the Producer Price Index (PPI) report will be released; and on June 15th at 8:30 AM EST the Consumer Price Index (CPI) report will be released and at 9:15 AM EST the Industrial Production report will be released.
This Weeks Economic News
The reports are: on June 19th at 8:30 Am EST the Housing Starts and Building Permits reports will be released and on June 21st at 8:30 AM EST the Initial Claims for state joblessness benefits report will be released and at 8:30 AM EST the International Trade report will be released. These reports will rate a C+ to B- on a scale of A-F. Everyone should place close attention to pre-market trading and how the futures are acting each morning before the market opens for trading.
IPOs by M_A_Trader©:
Ipos are not coming out now as the market goes lower. There will not be many ipos coming to the market so check them out on at this web site. Click on Ipo Info is a great site to research ipos.WARNING: IF YOU BUY IPOs AFTER THE STOCK OPENS USE LIMIT ORDERS ONLY.
We have heard FRONTIER OIL CORPORATION (NYSE: FTO) may become a takeover candidate at $15-16. This stock would be a very speculative play in the energy sector. Buy under $9 with a mental stop at $6 ½. Well, FTO is at $12.45 on May 15th so we would recommend a trader sell ¼ of their holdings and take some profits off the table if they bought below $9. Hold the rest for our $16 target and move the stop up to $11.75. Only use money you can afford to lose all of it in this type of trade.
FTO hit our stop of $11.75 on May 23, 2001 so if you still hold some FTO you should have been stopped out at a nice gain.
FTO hits $17.00 for a high on June 6, 2001 so it did our target of $16.00.
The FED cut rates 50 basis points on May 15, 2001. The Fed will next meet on June 26-27, 2001. We are now looking for a 50 basis point rate cut at that time. Because the economy is looking very weak at this time with inflation remaining low.
”A” Portfolio Stock Report by M_A_Trader©
We added more MDT at $41.25 and AAPL at $23.25 to the “A” Portfolio on May 23rd, 2001.
AAPL ($20.44) News for AAPL: No new news for AAPL. AAPL
We added MDT at $43.86; ISIL at $29.75; RETK at $29.75; and CTLM at $30.75 to our “A” Portfolio.
Here is some information on the above four stocks.
MDT ($43.72): Medtronic, Inc. News for MDT: “MINNEAPOLIS--(BW HealthWire)--June 15, 2001-- Product Joins the Octopus(R)3Tissue Stabilizer to Expand the Number of Patients That Can Now Benefit From Beating Heart Bypass Surgery Rounding out its full suite of products designed to facilitate the practice of beating heart bypass surgery, Medtronic, Inc. (NYSE:MDT) today announced the U.S. launch of its Starfish(TM) Heart Positioner. Available for immediate shipment, the Starfish will be paired with the market-leading Octopus(R)3 Tissue Stabilizer to form the new Octopus(R) System. According to the American Heart Association, more than 500,000 coronary artery bypass surgeries are performed in the United States each year. And increasingly, these surgeries are being performed on a beating heart - latest estimates indicate that more than 20 percent of all bypass surgeries are now being performed on a beating heart rather than a stopped heart, which is supported by the heart-lung machine. The patient benefits of undergoing beating heart rather than stopped heart bypass surgery have been increasingly well documented and can include less blood loss, less heart muscle damage and potentially a lower incidence of neurocognitive deficit following the procedure. The introduction of the new Octopus System signals a new chapter in the practice of beating heart bypass surgery. Developed to work in concert with the preferred Octopus3 and utilizing the same suction technology, the Starfish is designed to address some of the significant challenges a cardiac surgeon may face while performing beating heart bypass surgery. These challenges can include preserving the natural hemodynamic function of the heart as it is positioned for bypass grafting and creating a large, still and clear working space where the bypass grafts can be sewn precisely into place. The Starfish, working in conjunction with the Octopus3, is designed to maximize access to all of the heart's coronary arteries - including those on the back of the heart - and minimize the hemodynamic deterioration caused by the manipulation of a beating heart. "As the practice of beating heart bypass surgery continues to grow, Medtronic is poised to continue providing the surgical tools that will best optimize long-term outcomes for patients," said Bob Guezuraga, president of Medtronic Cardiac Surgery. "With today's introduction of the Starfish, U.S. physicians now have access to a premium product that will further accelerate the practice of beating heart bypass surgery. In using our system, they will now be able to access the most challenging, hard-to-reach coronary arteries, minimize the impact this positioning can have on the natural blood-pumping action of the heart and maximize the number of patients that can benefit from this approach." The Starfish heart positioner is a disposable, retractor-based device comprised of silicone suction appendages, an articulating arm and a mounting clamp. The silicone appendages conform to the surface of the heart and enable the surgeon to position the beating heart in such a way as to ensure access to the coronary arteries that need to be bypassed. The Starfish's articulating arm provides additional flexibility and further multiplies the number of positioning options available to the surgeon. Once the heart is positioned, the surgeon can place the Octopus3 tissue stabilizer parallel to the target artery to reduce motion and facilitate the suturing of the bypass graft. Working in partnership and mounted on the same sternal retractor, the Starfish and the Octopus3 provide the surgeon with optimal access to the targeted arteries, as well as a still surgical field on which to suture the bypass graft to the artery - all while the heart continues to beat. The introduction of the Starfish furthers Medtronic's leadership in the development of technologies that support the practice of beating heart bypass surgery. In partnership with a team led by Professor Cornelius Borst at the University of Utrecht in the Netherlands, Medtronic pioneered and introduced one of the first tissue stabilizers in the industry - the Octopus(R) - in 1997. During the last four years, Medtronic has introduced four more generations of Octopus tissue stabilizers, and Octopus stabilizers have been used in over 100,000 beating heart surgeries worldwide. Medtronic has also developed a full suite of cardiac surgery accessories designed to maximize the benefits of the off-pump procedure.” MDT
CTLM: Centillium Communications. News for CTLM ($18.70): No new news for CTLM CTLM
ISIL ($28.90): ISIL News for ISIL: No new news for ISIL. ISIL
RETK ($37.15): etek Inc. News for RETK: No new news for RETK. RETK
We have added AXP at $37.50; FRE at $60.50; and XLF at $25.50 to the “A” Portfolio a few weeks ago. All three stocks are in the financial sector. Here is some information on all three companies.
AXP American Express ($38.94). News for AXP: No new news for AXP. AXP
FRE ($64.95) News for FRE: No new news for FRE. FRE
Financial Sel Sect Spdr Fd (AMEX: XLF $27.58) is a sector spider traded on the AMEX.
The upper resistance levels for the Nasdaq is 2,350 and then 2,575. Support is at 2,200 and then 2,100. We would like to see the Nasdaq stay above 2,000. The Dow has support at 11,000 and then 10,900. Resistance is at 11,300. The Dow is going under 10,900 support so we would like the Dow to stay above 10,500.
We have been using this as a guideline only. We are holding some stocks with a loss of over –30%. If this market breaks down lower we may dump some of the losing stocks that are in our “A” Portfolio. The “A” Portfolio is going to a strict percentage gain or loss sell mode for now with the market fluctuating so much at this time. If a position moves up +20% one-quarter of the position will be sold, at +40% another one-quarter will be sold, and then at +75 to +100% another one-quarter of the position will be sold. That will leave one-quarter of the position to ride the stock higher. We still will use –30% to exit a stock position. Our targets for these stocks are on our Charts page.
We will talk about more of the stocks in the “A” Portfolio in the coming weeks.
All the past additions to the “A” Portfolio are on this page now.”A” Portfolio Additions
Please read our disclaimer about the “A” Portfolio here. ”A” Portfolio Disclaimer
Stock Charts for 2000 and 2001
The Charts page will be up and running by the end of June 2001.This page has links to all our stock charts and “A” Portfolio results for 2001.The Charts
After we turn from overall market downward momentum to upward momentum these two Canadian companies should rebound well.
Infowave Wireless (IW:TORONTO) Target US$30 Infowave is well positioned to take advantage of the coming boom in wireless email. Thomas Koll(a current VP at Microsoft) will be starting as the companies CEO on February 15. They have many impressive partners including Intel, Nokia and Compaq. Current market conditions have made this stock very oversold.
Rogers Communications (RCB.A:TORONTO) Target US$42 Rogers is Canada's largest cable television company they also have their hands into providing high speed internet as well as cellular and paging services. The long-term outlook for this company is stable and is likely to see steady growth in a booming industry.
Stocks We Like
Research in Motion closed the week at $27.53 we have lowered our 12 month target to $155 (RIM, TSE) (RIMM, NASDAQ). We are letting RIMM run for our target of $155. Since we already have PALM a trader may want to add HAND and have all three in their portfolio.We added RIMM at $40 ¼ and today March 28th we added more RIMM at $20.You may have to hold RIMM for 12 – 18 months depending on how the market is doing. RIMM has found partners in AOL and Compaq. Amazon has Crackberry available for $499 with service available at $39.95 per month. News for RIMM: “SAN FRANCISCO, Jun 13 /PRNewswire/ -- Epoch Partners today announced it has issued a Research Note on Research In Motion, Inc. (Nasdaq: RIMM). The Note is available for free to investors through the Epoch Web site (www.epoch.com). The Research Note, issued by Matthew Adams, Senior Research Analyst for Wireless Data, discusses the current investment thesis of Research In Motion, Inc. Highlights from the report include the following: -- Research in Motion's handheld devices deliver real-time wireless messaging and have become indispensable accessories for business executives. We think RIM has reached an inflection point and is set to burst into the mainstream market. -- More than 8,000 companies use RIM devices and its Blackberry service and more than 2,000 of these companies use its server software. A new Lotus Notes version of Blackberry software doubles the potential market of business users. -- A co-branding agreement with consumer ISPs and new wireless carrier reseller pacts will move RIM devices out of the executive suite and into the hands of everyday users. -- RIM just released a GPRS device that adds voice functionality, enabling users to make phone calls from their PDA. This makes RIM first to market with an integrated voice-capable PDA and gives the company a leg up on the competition. Our DCF analysis returns a forward value of $41 per share, 33% above current price levels. Although RIM shares trade at more than twice the forward revenue multiples of other PDA makers, we think RIM's profitability and faster revenue growth justify the premium multiple.” RIMM
VIRS (4.46 ) is a very speculative buy at this time. VIRS is a strong buy if it sinks down to $4 1/2 – 5 1/2 Only buy it if you can afford to lose all you invest in it. The chart for VIRS is looking good so continue to hold this stock for our $35 target. News from VIRS: No new news for VIRS now.
Management and product development strategy is available on Triangle's website at: VIRS
We are adding another blown up stock as a speculative buy. We are adding ZOOX (3.16), as a very risky buy at $2 ½ or lower with a target of $29 in 24 months. ZOOX is currently having a slow down in sales year to year. Its new switch for SANS are not selling as well as management expected. New management has been installed but it may take two or more quarters to fix their inventory oversupply. Well, ZOOX has not been doing very good since we recommended it a few months ago. We would average into more of ZOOX and hold for the long-term. ZOOX may be dead money for the next two-three quarters. News for ZOOX this week: No new news for ZOOX. Only buy this stock if you can afford to lose your entire investment in ZOOX.ZOOX
We are looking at adding IOM Iomega Corp. ($2.41) to our “A” Portfolio under $3.00. It has come out with a new storage device for home computers that will hold 10-20 Gigs of data. IOM is another beaten up high tech stock so only invest money in it you can afford to lose all. We added more IOM at $2.10 to our “A” Portfolio on June 18, 2001.
Iomega Corporation designs, manufactures and markets innovative storage solutions, based on removable-media technology for personal computer & electronics device users. IOM
News for IOM: “OY, Utah, June 18 /PRNewswire/ -- Iomega Corporation (NYSE: IOM), a global leader in data management solutions, today announced that revenue in the second quarter of 2001 may be in the range of 180 to 190 million, down significantly from revenue of 304 million in the second quarter of 2000. As a result, the Company expects to report a pre-tax loss for the second quarter of 2001. "The revenue shortfall in the second quarter is due mainly to lower Zip and Jaz revenue," said Philip Husby, chief financial officer, Iomega Corporation. "Sales of HipZip, FotoShow and CD-RW have also been below our expectations. We expect to record charges in the second quarter that reflect our best judgement regarding the net realizable value of HipZip, FotoShow, and CD-RW inventory at Iomega and in Iomega's retail and distribution channels, possible loss accruals for related supplier purchase commitments, and other charges." The Company's pre-tax loss for the quarter is expected to range from 41 to 62 million, including charges ranging from 33 to 50 million. Iomega cautioned that actual results for the second quarter, which ends on July 1, 2001, may be higher or lower based upon a number of factors, including sales activity for the remainder of the quarter, sales and inventory data collected from Iomega's channels that may impact revenue recognition, and ongoing assessments of the charges required to appropriately reflect the net realizable value of inventory, possible loss accruals, and other charges. The Company continues to examine opportunities to reduce costs. Last week, the Company announced that its worldwide manufacturing operations will be consolidated at the Company's Penang, Malaysia, manufacturing facility. The Company expects to undertake additional cost reduction actions. These actions will likely result in additional charges in the third quarter of 2001. The company plans to announce second quarter results after the close of business on July 19, 2001.”
For more information about the Iomega Peerless drive system, please visit Peerless. Price and availability The Iomega Peerless drive system can be ordered today by residents of the U.S. through Order Shipments to international regions are expected to begin at the end of May. The drive with interface module retails for 249.95 (U.S. suggested retail price). Individual Peerless disks can be ordered today for 159.95 (10GB) and 199.95 (20GB) (U.S. suggested retail prices). The base station bundled with an interface module and a 20GB disk retails for 399.95 (U.S. suggested retail price). The base station bundled with an interface module and a 10GB disk retails for 359.95. FireWire interface modules are expected to be available within weeks.”
Over the next few weeks we will talk about the stocks in our “A” Portfolio. We added more IMNX ($15.01) to our “A” Portfolio because they still will sell all the Enbrel they can produce and have a waiting list for Enbrel. IMNX News for IMNX this week: “ATTLE, June 15 /PRNewswire/ -- In clinical data presented this week from three long-term studies of moderately to severely active rheumatoid arthritis (RA) patients receiving ENBREL(R) (etanercept), a sustained therapeutic response was demonstrated with no significant increase in the type or rate of side effects over time. The data, some of which represent the longest study to date of patients on a therapy to inhibit tumor necrosis factor (TNF) in RA, are being presented this week at the European League Against Rheumatism (EULAR) meeting in Prague. "These studies show that many patients using ENBREL experience symptomatic improvement, not only within two weeks of starting ENBREL, but can sustain that improvement when measured over the long-term," says Leslie Garrison, Senior Vice President, Clinical Development at Immunex Corporation (Nasdaq: IMNX). ENBREL is the only TNF inhibitor approved for use without methotrexate, a drug that has been the most commonly used disease modifying drug for RA. ENBREL is indicated for reducing signs and symptoms and inhibiting structural damage in patients with moderately to severely active rheumatoid arthritis. The first study is open-label and includes adult patients who had failed other DMARDs (disease modifying anti-rheumatic agents) and are using ENBREL as monotherapy. The patients had been enrolled in previous studies of ENBREL: 71 patients were studied for more than four years 358 patients were studied for more than three years 430 patients were studied for more than two years and 479 patients were studied for more than one year. The following four year data were presented by Larry Moreland, MD, of the University of Alabama-Birmingham: -- 24% of patients had zero swollen joints -- 28% of patients had zero tender joints -- 21% of patients had disability scores of zero -- 74% of patients achieved the ACR 20 -- 49% of patients achieved an ACR 50 -- 26% of patient achieved an ACR 70 -- More than half of patients decreased their steroid use by 72% on average -- 32% of patients have completely discontinued steroid use ENBREL was generally well tolerated over the four years of this study. In the study, no significant differences in the type or rate of adverse events were seen in patients treated with ENBREL over time. Serious adverse events occurred at a rate of 0.14 per patient-year in the long-term study compared to 0.13 in the patients treated with ENBREL and 0.20 in placebo patients in the previous controlled studies. Likewise, serious infection (associated with hospitalization or IV antibiotics) occurred at a rate of 0.04 per patient year in the long-term study, compared to 0.04 per patient year in patients treated with ENBREL and 0.05 in placebo patient in the controlled studies. The number of malignancies reported in patients treated with ENBREL was similar to expected numbers calculated from the National Cancer Institute SEER database (12 reported vs. 15 expected). No opportunistic infections have been observed in patients treated with ENBREL in the long-term study. Study of ENBREL and Methotrexate Shows Two-Thirds Of Patients Reduce Methotrexate Use By 62% On Average A presentation by Roy M. Fleishmann, MD, of Metroplex Clinical Research Center in Dallas TX, demonstrated that in a combination study of ENBREL and methotrexate that followed patients (who had failed other DMARDS) for three years, patients' symptoms improved significantly while methotrexate use was reduced. "Enbrel is effective, generally well tolerated, and can enable many patients to reduce, eliminate, or avoid the use of methotrexate," says Scott W. Baumgartner, MD of Spokane, WA. "This is valuable, because some patients are unable or do not wish to use methotrexate due to side effect or tolerability issues." Sixty-seven of 79 patients remain on the long-term, open-label study. Of these, 76 were studied for at least one year, 63 for at least two years, and 41 for at least three years. At the start of the study all patients were taking approximately 18 mg of methotrexate per week, but had persistent symptoms. At three years: -- 68% of patients have reduced their methotrexate dose by 62% on average -- 29% of patients were able to completely discontinue methotrexate use -- 42% of patients were able to completely discontinue steroid use -- 78% of patients achieved an ACR 20 -- 49% of patients achieved an ACR 50 -- 29% of patients achieved an ACR 70 No significant differences have been seen in the type and rate of adverse events observed over time, when compared to the earlier controlled study of ENBREL plus methotrexate. ENBREL Shown Effective as First-Line Therapy in Two -Year Study In a third study, presented by Mark Genovese, MD from Stanford University, 632 patients who had been newly diagnosed (within three years) with RA received either ENBREL or methotrexate in a double-blind, randomized, placebo-controlled trial. Patients on the study had not previously received DMARDS, including methotrexate. The study, which demonstrates long-term efficacy and tolerability for ENBREL, includes the following results for the ENBREL (25 mg dose) and methotrexate (20 mg on average) treatment groups after two years: -- 72% of patients using ENBREL achieved an ACR 20 compared to 59% of patients receiving methotrexate -- 70% of patients using ENBREL experienced no new joint erosions at two years, compared to 58% of patients receiving methotrexate Statistically different side effects between patients in this study treated with ENBREL and methotrexate (seen in greater than 10 of patients) were: -- 35% of patients using ENBREL experienced mild to moderate injection site reactions -- 31% of patients using methotrexate experienced nausea -- 17% of patients using methotrexate experienced mouth ulcers -- 12% of patients using methotrexate experienced hair loss Two percent of patients experienced methotrexate lung toxicity. The rate of infections was 1.39 events per patient year for patients using ENBREL, compared to 1.70 events per patient year for patients receiving methotrexate. There were no opportunistic infections. Serious infections were infrequent in both treatment groups.”
Corvis Corporation CORV ($4.30) News for CORV: No new news on CORV. CORV
Sycamore Networks (SCMR) ($8.25) News for SCMR: No new news on SCMR. SCMR
Ceragon Networks Ltd. (CRNT $3.20) News for CRNT: No new news for CRNT. CRNT
Capstone Turbine Corp. CPST ($21.92) News for CPST: “CHATSWORTH, Calif.--(BUSINESS WIRE)--June 14, 2001--Capstone Turbine Corporation (www.microturbine.com) (Nasdaq:CPST) today announced it has begun producing commercial quantities of recuperator cores at its nearby Van Nuys plant. A recuperator is a device that extracts heat energy from the exhaust of a combustion system to preheat intake air, which increases energy efficiency. In Capstone's case, the recuperator surrounds the microturbine engine and effectively doubles its efficiency. Solar Turbines (www.solarturbines.com) has been the sole source of recuperators to Capstone up to this time. Solar and Capstone worked cooperatively for several years to develop advanced automated manufacturing techniques for the jointly designed product. Last September, Capstone announced a licensing agreement to manufacture the recuperator. "Our experience with the Solar-manufactured recuperator has been excellent. We have sold and shipped well over 1,000 Capstone MicroTurbines and have had no field failures of recuperators. This led us to the next logical step of investing in the equipment and resources to manufacture them ourselves," said Dr. Ake Almgren, president and CEO of Capstone Turbine. "Our goals were to eliminate sole-source dependence, control production volumes and reduce costs. The recuperator has been among the most costly components of the Capstone MicroTurbine," Almgren said. "In this world's-first automated recuperator core production process, we hope to achieve a goal of cutting labor time in half and realizing other cost savings. "This is a strategic move for Capstone, eliminating what could have been availability restrictions. Taking the recuperator core production process technology to this new level is a crucial factor in volume manufacturing of microturbines, because if you can't mass produce recuperators, you can't mass produce microturbines," Almgren said. Originally intended to go online in the third quarter of 2001, Capstone announced in their first quarter 2001 earnings report the acceleration of the company's recuperator core-manufacturing program from September to June of 2001. Capstone has an inventory of Solar-produced recuperators to help ensure uninterrupted microturbine system production. "There are still some manufacturing refinements and enhancements to achieve, but we are ahead of schedule and seeing very positive results," Almgren said.” CPST
CORR ($31.42) News from CORR: “SOUTH SAN FRANCISCO, Calif. & KENILWORTH, N.J.--(BW HealthWire)--June 11, 2001--COR Therapeutics, Inc. (Nasdaq:CORR) and Schering- Plough Corporation (NYSE:SGP) announced today that the U.S. Food and Drug Administration has approved revised prescribing information for INTEGRILIN(R) to include a new dosing regimen for patients undergoing percutaneous coronary intervention and specific reference within the product's indications for use in patients undergoing intracoronary stenting. Most of the labeling changes are reflective of the results of the ESPRIT (Enhanced Suppression of Platelet Receptor GP IIb-IIIa using INTEGRILIN Therapy) study of INTEGRILIN in patients undergoing non-emergency percutaneous coronary intervention (PCI) with intended intracoronary stent placement. ESPRIT demonstrated that patients who received INTEGRILIN, dosed as an initial 180 mcg/kg bolus injection, immediately followed by a 2.0 mcg/kg/min infusion and a second 180 mcg/kg bolus injection ten minutes after the first bolus, experienced a highly statistically significant reduction in the combined endpoint of death, heart attack, urgent target vessel revascularization, or need for thrombotic bail out versus those receiving placebo at 48 hours and at 30 days. This is now the recommended dosing regimen for INTEGRILIN in patients undergoing PCI. Other labeling changes reflect new dosing guidelines for INTEGRILIN in renally impaired patients, revised heparin dosing recommendations in PCI, and updates to the safety related sections of the prescribing information. An electronic version of the revised prescribing information for INTEGRILIN can be accessed through the COR Therapeutics website at Prescribing Info” CORR
Three recent additions to the “A” Portfolio are being reported on.
EMBT ($22.50): News for EMBT: No new news for EMBT. EMBT
PALM ($5.14) News for PALM: No new news for PALM. PALM
CMRC ($3.89): News for CMRC: No new news for CMRC. CMRC
HAND ($6.15) Handspring, Inc. News for HAND: No new news for HAND. HAND
CHIR ($48.95) Chiron Corp. is a biotechnology company that is developing products for preventing and treating cancer, infectious diseases and cardiovascular disease. News for CHIR: No new news for CHIR. CHIR
MLNM ($33.90) News for MLNM: “CAMBRIDGE, Mass., June 15 /PRNewswire/ -- Millennium Pharmaceuticals, Inc. (Nasdaq: MLNM) today announced the initiation of a Phase II clinical trial of LDP-341 (also known as PS-341) for patients with chronic lymphocytic leukemia (CLL). LDP-341, the first in a new class of anti-cancer agents, is an investigational proteasome inhibitor for the potential treatment of a variety of cancers, including hematologic malignancies and solid tumors. This clinical trial, the third Phase II study of LDP-341 as a single agent in hematologic malignancies, is an open-label dose-finding study of LDP-341 in patients with chronic lymphocytic leukemia who have relapsed during or within six months after receiving treatment with a purine analog. The goal of this study is to assess the safety and response rate associated with two doses of LDP-341 in patients with B- or T-cell CLL. n vitro data have shown that CLL cells are sensitive to drugs targeting proteasomes, and these drugs may be able to induce apoptosis (programmed cell death) of malignant cells in patients with CLL even in the presence of resistance to conventional chemotherapeutic treatments. Pharmacogenomic information derived from this clinical study will be examined in hopes of revealing the genetic controls for cancer cell response or resistance to therapy. The 64-patient study was initially developed as a single-center study, with Dr. Stefan Faderl as lead investigator and Dr. Michael Keating as co- investigator, both of The University of Texas M. D. Anderson Cancer Center. Once underway, Millennium plans to expand the trial by adding four or five additional sites. "LDP-341, with its novel mechanism of action, no known mode of resistance and what appears to be manageable toxicity, warrants further investigation as a single agent or in combination with other agents," said Dr. Keating. "Despite encouraging results seen with some recent advances in therapy, treatment options for heavily pre-treated patients with CLL remain limited." "The initiation of the CLL study, our third Phase II trial of LDP-341 this year, combined with the recent FDA approval of Campath(R) (alemtuzumab) for refractory CLL and the in-licensing of the anti-PSMA antibody for prostate and other cancers, powerfully demonstrate the strength of Millennium's commitment to its oncology franchise," said Mark Levin, chief executive officer of Millennium. Millennium initiated two Phase II clinical trials of LDP-341 in multiple myeloma in the first quarter of this year. The first is a multi-center open label study of LDP-341 alone or in combination with dexamethasone in patients with refractory myeloma, and the second is a randomized, open label study of LDP-341 alone or in combination with dexamethasone in myeloma patients who have relapsed following front-line therapy. Additional Phase I/II studies of LDP-341 in combination with chemotherapy to treat advanced solid tumors are planned to begin later this year. LDP-341 is a small molecule proteasome inhibitor under development by Millennium as a novel agent to treat human malignancies. LDP-341 blocks proteasome function, leading to induction of apoptosis (programmed cell death) and inhibition of cell growth, cellular adhesion molecule expression, and angiogenesis (development of blood vessels supplying a tumor site). Proteasome Inhibition In normal cells, the ubiquitin-proteasome pathway is responsible for the orderly breakdown of multiple proteins and thereby helps to define protein turnover rates. Proteasomes, large complexes of proteolytic enzymes, break down these intracellular proteins, recognizing them by their ubiquitin molecular tags. In addition to degrading unwanted proteins, the proteasome is involved in the regulation of cellular signals that govern the cell division cycle, as well as cell growth and differentiation. Selective inhibition of proteasome activity has numerous effects, including attenuating the activity of NF-kB, the transcription factor that controls cellular inflammatory response, as well as inhibiting the activity of bcl-2, a gene involved in cell survival. Both NF-kB and bcl-2 are used by cancer cells to help them survive treatment with standard chemotherapy agents. In tumor cells, proteasome inhibition produces overwhelming cellular stress by stabilizing cell cycle regulatory proteins and disrupting cell proliferation, ultimately leading to apoptosis. Selective inhibition of proteasome activity has numerous effects, including attenuating the activity of NF-kB, the transcription factor that controls cellular inflammatory response, as well as inhibiting the activity of bcl-2, a gene involved in cell survival. Both NF-kB and bcl-2 are used by cancer cells to help them survive treatment with standard chemotherapy agents. In tumor cells, proteasome inhibition produces overwhelming cellular stress by stabilizing cell cycle regulatory proteins and disrupting cell proliferation, ultimately leading to apoptosis. Chronic Lymphocytic Leukemia Chronic lymphocytic leukemia (CLL) is the most common adult leukemia occurring in the western hemisphere, affecting between 1.8 and 3 patients per 100,000 population. The incidence increases with age, with the median age at diagnosis being 70 years. Over 7,000 new cases are diagnosed in the United States each year. Survival is related to clinical stage at diagnosis: high risk patients (Rai Stage III and IV) have a median survival of about 24 months, intermediate risk patients (Rai Stage I and II) have a median survival of about eight years and low risk patients (Rai Stage 0) have a median survival of over 12 years. CLL is characterized by an accumulation of leukemic (malignant) lymphocytes in the bone marrow, blood and other tissues. As a result of the accumulation of malignant lymphocytes, bone marrow dysfunction and enlargement of the lymph nodes, liver and spleen may occur. Patients with CLL may suffer from disease-related symptoms such as fatigue, bone pain, night sweats, and decreased appetite and weight loss. Despite some advances in therapy, CLL is not considered to be a curable disease in the vast majority of patients. Although the natural history of the disease may span decades, treatment is almost always followed by relapse and progression. As patients progress through successive courses of therapies, the duration of response to treatment typically shortens, incidence of infections and other toxicities increases, and deaths during treatment become more common.” MLNM
JDSU ($12.44) News for JDSU: “OTTAWA, Ontario and SAN JOSE, Calif., June 8 /PRNewswire/ -- JDS Uniphase Corporation (Nasdaq: JDSU Toronto: JDU) today announced simultaneous and archived webcasting for four corporate presentations in the coming weeks. All of the webcasts can be accessed at JDSU under Investor Relations/Webcasts & Presentations. CIBC World Markets "The Communications Food Chain" Tuesday, June 12, 2001 at 10:15 AM Eastern Time First Union Securities Nantucket Equity Conference Tuesday, June 26, 2001 at 10:15 AM Eastern Time William Blair 21st Annual Growth Stock Conference Tuesday, June 26, 2001 at 11:30 AM Eastern Time Thomas Weisel Partners Growth Forum 3.0 Wednesday, June 27, 2001 at 5:00 PM Eastern Time JDS Uniphase is a high technology company that designs, develops, manufactures and distributes a comprehensive range of products for the growing fiberoptic communications market. These products are deployed by system manufacturers worldwide to develop advanced optical networks for the telecommunications and cable television industries. JDS Uniphase is traded on the Nasdaq National Market under the symbol JDSU, and the exchangeable shares of JDS Uniphase Canada Ltd. are traded on The Toronto Stock Exchange under the symbol JDU. More information on JDS Uniphase is available at: JDSU
MYGN ($65.61) News for MYGN: No new news for MYGN. MYGN
PFE ($42.63) Pfizer Inc. News for PFE: No new news on PFE. PFE
New stocks for this newsletter and to our “A” Portfolio.
EXTR ($24.91) Extreme Networks provides switching solutions that meet the needs of enterprise local area networks, via utilization of ASIC semiconductors throughout the product line. News for EXTR: No new news for EXTR. EXTR
PBSC ($5.80) Packard BioScience is a developer, manufacturer and marketer of instruments and related consumables and services for use in the life sciences research and nuclear industries. News for PBSC: No new news for PBSC. PBSC
EXDS ($6.33) was added to our “A” Portfolio at $8.00. EXDS is a provider of Internet system and network management solutions. EXDS offers server hosting, Internet connectivity, collaborative systems management and Internet technology services. News for EXDS: No new news for EXDS.EXDS
RBAK was added at $10.55 on June 18, 2001. Here is some information on RBAK: Redback Networks is a provider of advanced networkingsystems that enable carriers, cable operators and service providers to rapidly deploy high-speed broadband access to the Internet and corporate networks. For the 3 months ended3/31/01, revenues totaled $90.9M, up from $34.2M. Net loss totaled $400.5M, up from $85.2M. Results reflect increased unit sales of the SMS 1000 and SMS 1800, offset by a higher amortization charge. RBAK
New additions to our “A” Portfolio made on June 18, 2001: IOM @ $2.10; JDSU @ $11.00; PALM @ $4.56; HAND @ $5.53; GLW @ $13.68; CPST @ $20.70; RBAK @ $10.55; EXDS @ $3.85; CORV @ $3.81; and SCMR @ $7.87.
With the Market being so volatile, a trader should have some close mental stops in the stocks they buy. We suggest a mental stop of 20% is used where appropriate.Income and Bonds
We recommend buying utilities based in Florida and not any utilities based in California. The reason is California based utilities do not produce enough of their own power and have to go onto the open market to buy power during peak usage. California utilities are having trouble and two of them Edison Intl. (EIX) and P G & E Corp. (PCG) are having problems so stay away from them for now. PCG has declared bankruptcy last week and Edison Intl. (EIX) has said they will not declare bankruptcy for now. We would stay away from any power generators that supply power to any California utilities at this time. For a person needing some income be sure to look into electric utilities for some bargain buying opportunities to take advantage of the high dividend paying utilities. We would buy 5-year and 10-year treasuries for income and some appreciation if interest rates are lowered this year. We recommend 3-6 months Treasuries because they are currently yielding 4.0%. CEI ($24.83) yield has gone down to 8.85% but it is still a buy for its yield and our target is $35. We also like these two reits: CRE ($28.92) yielding 6.43% CarrAmerica Realty is a REIT that focuses primarily on the acquisition, development, ownership and operation of office properties in suburban growth markets in the U.S. Forthe FY ended 12/31/00, revenues rose 8% to $558M. Net income from continuing operation fell 3% to $147.2M. Revenues reflect the development of properties being placed in service and higher occupany rate for store properties. Earnings were offset by a lower gain on the sale of assets. CRE and SPG ($27.75) yielding 7.63% Simon Property Group, Inc. is a self-administered and self-managed REIT company, primarily engaged in the expansion & development of real estate properties, primarily malls and shopping centers. For the fiscal year ended 12/31/00, revenues rose 7% to $2.02B. Net income before extra item & acct. change, applic. to Common and limited partners rose 14% to $347.4M. Revenues reflect the CPI merger. Net income reflects gains vs. losses on RE sales. SPG
We have another energy stock we like that has some risk but not as much risk as some of the other energy stocks out in the market. The stock is Entergy (ETR). We added ETR ($40.15) to the “A” Portfolio at $38.50 on April 16th, 2001. News on ETR: No new news for ETR. ETR
Stocks for 2001
The new stocks we have added to our charts for 2001 are: INSP; IMNX; ICOS; TQNT; TGEN; SBUX; RSTA; CRXA; COST; WM; ISLD; MCOM; CHKP; EMLX; ITWO; MANU; JNPR; MUSE; VRTS; QLGC; VRTY; ACRT; AREM; CHCS; INRS; PWER; PDII; SNWL; CHEZ; KO; CORV; GPS; GSPN; MDT; MRCY; AMCC; VTSS; XLNX; BKE; MYGN; CHIR; APC; DVN; JNY; MCLD; NBR; PTEN; QQQ; and TXN. We dropped the following stocks: T; EWEB; ROWE; SGAI; PCOR; PCNTF; ICY; AND LU. You will notice there we be more sections in the charts section of the website. We still will have sections called 12 month, Like, and Tracking. With new sections for Beaten up stocks from 2000, an ADV section for stocks new to our Newsletter, and a section called Dogs of the Dow. Dogs of the Dow are five stocks chosen from the Dow Jones Average of 30 stocks that has shown to beat the market over the past few years.
Some the company’s reports written about Stocks 2001 in the newsletter are here Stock Picks 2001
With the Market being so volatile, a trader should have some close mental stops in the stocks they buy. We suggest a mental stop of 30% is used where appropriate.
Readers will notice all our stocks we follow are on a separate page and we will list prices to purchase stocks at and a target price that we feel the stocks have of reaching in 12 months.