3SOF

Geron Corporation. (GERN) The Group's principal activity is to discover, develop and commercialize therapeutic and diagnostic products for applications in oncology and regenerative medicine and research tools for drug discovery.

Yesterday we've had news (Geron Enters into a Collaboration and License Agreement with MERCK & CO., INC. for Cancer Vaccines Targeting Telomerase) that produced the following jump on GERN's stock:



I would like to highlight this excerpt: «Under the terms of the agreement, Geron will receive an upfront payment, milestone payments upon achievement of certain development and regulatory events, and royalties. Merck has also agreed to acquire equity in Geron at a future date as part of Geron's next round of financing. Additional financial terms were not disclosed.»

If you read the rest of the text and consider GERN has a market cap of just 603.70M, there's no doubt these are extremely positive news for the company.

Technically GERN made a breakaway gap, flying above the $9.85 resistance level, and the technical target of the breakout is $14.28:



This looks to me like a low risk/high reward technical setup.

I've decided to buy GERN at today's open, 6.66% of capital.

This analysis is part of «Top 5 Stocks for Tuesday», conducted by David Randolph, where he looks for stocks that have a chance of being bought for the 3 Stocks on Fire Portfolio. The portfolio is up 136% since May 2005.

www.3stocksonfire.org is a T2T project, which means it is made by traders to traders and investors. We have an already large community of investors changing strategies and stock picks. If you want to join our community and receive our free newsletter, please register.

Good pick and applaud. Seems like I will be buying only biotech and pharmas this summer

   I have been in and out of this stock so many times over the years.  Jumped in this am with both feet!!!!!!!!!!   Love it, Love it, Love it!!!!!!!! 
Still believe in BRVO, and also lovin LYRIA: bought MORE++++++!!!!!!!!!!!!!!!!!!!! 

The stock may pullback as it did yesterday, but there's no doubt there was a breakaway gap with enormous volume and resistance at $9.80-$9.85 is now support.

Holding GERN with confidence it is a good play. I would like to see more specific numbers on the deal with Merck, though, but I know it's always a good deal when you get a new costumer and investor.

Great Job David !!
Applaud.

On the move this morning.

-Jeff-

Thanks fill_the_gap 

GERN made a breakway gap and that breakout has a technical target of $14.28. I think investors are just digesting the enormous and sudden rise, taking some profits, but the only way is up for this stock.

Taking a low volume run down to the 9ema should hold in this area which will be a nice continuation signal for upcoming advance, lets see how it goes, always some risk with a gap to fill below though.

Got hit on all front

DNDN, GERN, ELN.  I should better take my medicine.

Hey Aussietrader, good to see someone besides me who uses QuoteTracker. I'm a big fan 

BadarZ

Quote from: stocky on July 22, 2005, 12:48:14 PM
Got hit on all front

DNDN, GERN, ELN.  I should better take my medicine.

Would that be chinese medicin? AOB is doing great 

Yes mike, AOB, the chinese potion. One feels like a dragon

I don't like GERN's market action, something's wrong here. When we get a breakaway gap (a jump above resistance without touching it) the stock is not supposed to come down and start filling that gap !

The deal with Merck was great, but the financial terms were not disclosed, GERN didn't said how much it will receive from Merck or how much (and when) will Merck buy of GERN's stock:

(«Financial terms of the collaboration weren't disclosed, but the agreement calls for Merck (MRK: news, chart, profile) to acquire equity in Geron at a future date as part of Geron's next round of financing. In addition, Geron will receive an upfront payment, milestone payments and royalties on any successful drugs resulting from the collaboration.»)

So I'm more than willing to take a small loss here, if the stock is set to close today below $9.8 I'll sell today at the close without contemplation.

Lesson to learn: don't be enthusiastic about a deal just because it is made with a big company. Look for details. If details of the deal are not disclosed, stay away from the stock.

This is how a breakaway gap should behave:

As said, sold GERN near the close at $9.6, a 10% loss.

If you consider the resistance at 9,46$ it would fit your theory. We just have to see if it will hold at that level without a touch and then back to the sky....