3SOF

Dilution is the reason for todays pullback. Total shares outstanding are about 55 Million


Form 8-K for INSMED INC


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24-Jan-2006

Sale of Equity



Item 3.02 Unregistered Sales of Equity Securities
Between January 17, 2006 and January 24, 2006, Insmed Incorporated received notices from holders of its 5.5% Convertible Notes due 2008 - 2010 electing to voluntarily convert $4,175,000 principal amount of Convertible Notes into 3,223,927 shares of common stock at the conversion rate of one share of common stock for each $1.295 in principal amount of the Convertible Notes. The Company also received $3,310,735 from warrant exercises that resulted in 2,434,364 shares of common stock being issued at an exercise price of $1.36. The number of shares issued pursuant to the conversion of the Convertible Notes and exercise of warrants since January 13, 2006, the date of Insmed's last report under Item 3.02, exceeded 1% of Insmed's outstanding common stock on January 18, 2006.

The common stock issued upon the conversion of the Convertible Notes and the warrants was issued in reliance upon the exemptions from the registration requirements of the Securities Act of 1933, as amended, provided for in
Section 3(a)(9) and Section 4(2) thereof and is all currently registered for resale by the holders pursuant to Insmed's Registration Statement on Form S-3 filed with the Securities and Exchange Commission on August 8, 2005 (the "Registration Statement").

Following the conversions described above, $6,013,000 principal amount of the Convertible Notes remained outstanding. In addition, because certain of the Convertible Notes were converted prior to the March 1, 2006 quarterly interest payment, the Company issued an additional 24,068 shares of common stock for the forfeited cash interest payment at a conversion price of $1.295. A summary of the terms of the Convertible Notes and the warrants, including the conversion features and interest payments of the Convertible Notes was previously provided in the Registration Statement and Insmed's Current Report on Form 8-K filed with the Securities and Exchange Commission on March 16, 2005 (the "Current Report"). The forms of the Convertible Notes and the warrants were filed on a Current Report filed with the SEC on March 16, 2005. The Registration Statement, the Current Report, the forms of the Convertible Notes and warrants are each incorporated herein by reference.

My pick is OSUR.   OraSure Technologies

OraSure has developed a saliva test for HIV virus, which gives on site results in 20 minutes with a 99% accuracy rate(according to the company). The test is currently approved by the FDA for  use by medical professionals, and approval of a kit to be sold over the counter is pending. You can imagine the market for a quick, non-invasive, accurate HIV test available over the counter at your local drug store.

The stock has had two recent gaps up, both of which have been filled. The first one was on Nov 21, when the stock was recommended by a TV stock Guru(Cramer). The second was on November 29, when the president of the company rang NASDAQ's opening bell along with the Surgeon General to promote Aids awareness.

The stock was extremely volatile on Friday, December 9, following a San Francisco Chronicle article stating the test had a 25% failure rate. This report was statistically inaccurate.  The incidence of positive results at the laboratory interviewed was 4%, and of those 4% one in four was a false positive, so the rate of inaccuracy was actually 1%. The company recommends that anyone getting a positive result have further blood testing. This rate of accuracy is better then many over the counter tests available, such as pregnancy tests.

I think the volatility caused by this article will blow over and the uptrend will continue.  If FDA approval for selling the kit over the counter appears near, the stock should take off.



http://stockcharts.com/def/servlet/SC.web?c=OSUR,uu

Huge volume on drop to 3.37.  Lots of stops hit the chopping block!  Weak hands flew the coop.  Volume much lower on rebound.  Dont be chicken, Hop back in.  Hope I dont get plucked!