SNUS

[David Randolph]

Sonus Pharmaceuticals (SNUS) is focused on the development of novel drugs that may offer improved administration, tolerability, safety and effectiveness for the treatment of cancer and related conditions. The Company's lead product candidate is TOCOSOL(R) Paclitaxel, an injectable, ready-to-use formulation of the widely prescribed anti-cancer drug paclitaxel. TOCOSOL Paclitaxel has been designed to overcome the limitations associated with Taxol(R) and generic paclitaxel-based chemotherapy, including time consuming and expensive preparation of the products prior to administration, long infusion times and undesirable or treatment-limiting side effects.

The latest news on this company indicate that it enhanced a private placement of equity at prices not far below the current market price (Sonus Pharmaceuticals Raises $17.8 Million in Private Placement of Common Stock), so institutions probably agree that this TOCOSOL drug has a good chance of getting to the final stage of being sold to the public.

Buy the rumor, sell the fact.

Technically we have one of the most reliable chart patterns, the double bottom, hence  my title on this recommendation:



We have a perfect double bottom and a bullish breakout today with volume above average. The technical target of this breakout is a modest $6.67, but the stock may run a lot further.

Let's take a look at the short term chart:



The risk is that this was a false breakout, but given the white marubozu with this kind of volume certainly it doesn't look like it is fake. You don't know it until you bet, with real money, like I'm going to do tomorrow when I buy SNUS for the 3 Stocks on Fire Portfolio, 6.66% of capital as usual.

(This recommendation was made by David Randolph from 3 Stocks on Fire, and he will update this analysis everyday after the close until he sells the stock. The 3 Stocks on Fire Portfolio is up 148% since inception on 28th of April 2005. 3 Stocks on Fire is a Community of stock traders and investors. Our 3154 members exchange trading ideas and strategies on our message boards everyday. We welcome you as a new member of the 3 Stocks on Fire Community, please take 10 seconds to register and receive our free newsletter)

[puenthouse]

No love for SNUS?   Pretty dismal morning.  All i can find are talks of a buy out but no specifics what so ever.  Looks like we bought this one on a SPIKE.  Good thing HOM is doing its job and looking so pretty allowing me to sit on this.  What is your drop price at? 4.50?

[nikao]

the stock is still bullish under 4,50 as long as it closes above the ascending bullish trendline.

I will watch the pull back.. as long as it closes above the opening price of the white marubozu it is an interesting short term play... 

[nikao]

when I looked at the chart myself I got confused.. it looks quite different from yours (yours is linear?)

in the way I look at it it went up right to the ascending resistance of the bullish price channel:

more of my opinion here
http://stock-diary.blogspot.com/2005/09/watchlist-snus.html

[nightshade81]

nikao, there is a channel of sorts and that is a good observation.....but two things David points out are even stronger in my opinion:

1) the strong and clear resistance at 4.5 (drawn as a horizontal resistance line versus the channels)

2) the massive volume that occurred on that day, more than any in almost 2 years

These two observations together indicate a strong technical event.  Of course we need to monitor the continued behavior.  Today it held and closed above the support (former resistance),and the pullback showed much less volume than the breakout -- which is good.  We will need to see what happens tomorrow, but hopefully good things are in store with the start of a new uptrend.  If we can't hold support though, dont waste time getting out.

[rmartens]

I may look for a buy @ 4.35, but I'm wondering if we might see a handle on this cup formation (Mar-Aug). That would push my buy out a couple of weeks. What do you think?

[puenthouse]

After Hours (RT-ECN): 4.99  0.46 (10.15%)
IS anyone tracking this?  IS this a type-O?

[rmartens]

AH is a typo as far as I know, Ameritrade streamer says $4.50 a share.

[422fwhp]

The question is:  How many shares?

[AussieTrader]

Guys, from what I see after hours on SNUS was tiny 1700 shares at $4.53.

[rpccpa]

Bought at $4.55 yesterday at Base of large candle... Pullbacks to support after large candles on low volume can be great boy points.... thanks for the heads up!


Sonus Pharmaceuticals to Present at Upcoming Investor Conferences

Thursday September 1, 6:30 pm ET


BOTHELL, Wash.--(BUSINESS WIRE)--Sept. 1, 2005--Sonus Pharmaceuticals, Inc. (Nasdaq:SNUS - News) today announced that management will present at two investor conferences in September. These presentations will provide a company overview as well as a review of Sonus' strategic initiatives including the development of its lead oncology candidate, TOCOSOL® Paclitaxel, a novel paclitaxel product. At the end of June 2005, the Company completed a Special Protocol Assessment (SPA) with the FDA for the pivotal Phase 3 trial of TOCOSOL Paclitaxel. The Phase 3 trial will compare TOCOSOL Paclitaxel to Taxol® in the treatment of patients with metastatic breast cancer.
Sonus Conference Participation:

Roth Capital Partners New York Conference, September 7-8,
New York City
Sonus Presentation:  Thursday, September 8, 2:00 P.M. EDT/11:00 A.M.
PDT (live audio webcast and replay at www.sonuspharma.com/events.html)

ThinkEquity Partners Growth Conference, September 12-15, San Francisco
Sonus Presentation:  Thursday, September 15, 11:00 A.M. PDT/2:00 P.M.
EDT (live audio webcast and replay at www.sonuspharma.com/events.html)

About TOCOSOL Paclitaxel

TOCOSOL Paclitaxel is a ready-to-use, vitamin E-based emulsion formulation that allows a dose of paclitaxel to be infused over 15 minutes. In Phase 2 clinical trials, TOCOSOL Paclitaxel has generated encouraging data on safety and anti-tumor activity in multiple tumor types, including breast, ovarian, non-small cell lung and bladder cancers. Based on the promising clinical results to date, Sonus believes that TOCOSOL Paclitaxel may be shown to improve the treatment and therapeutic outcomes of patients treated with taxane products. The Company continues to advance TOCOSOL Paclitaxel towards Phase 3 testing to study the potential advantages of the product.

About Sonus Pharmaceuticals

Headquartered near Seattle, Washington, Sonus Pharmaceuticals, Inc. is focused on the development of therapeutic drugs that may offer improved administration, safety, tolerability and effectiveness for the treatment of cancer and related conditions. For additional information on the Company, including past news releases, please visit www.sonuspharma.com.

[David Randolph]

I still love SNUS and still think it is a sure play. We've had a pullback with very low volume to the breakout level of $4.5, just as it comes in the books.

Just a bit of wind and this can fly to new highs like a rocket. My cut off point would be the ascending trendline but I don't think we'll go down that far.

We've had some news but I don't have time to analyze them now (besides my trading plan is based on the chart, so the read would be for entertaining purposes only), I'll do that on the next update of SNUS.

I'm confortably holding the stock at this point.

[Loffigus]

Watch this close -- we have a possible "G" pattern forming here.

[David Randolph]

The long and short term charts have so many objective words in them that I'm afraid of spoiling the picture here. I don't know about you, but I have to buy a stock with this kind of double bottom pattern, in perfect harmony with the long term chart.

I'll continue holding SNUS, and since this is the last update before the open (from the 3 Stocks on Fire Portfolio, I will still update the 3 Pennies on Fire Portfolio), let me tell you that I'm very pleased with all my 9 holdings (Ramsburg has ANX too, which is doing allright).

[David Randolph]

Nothing new on SNUS, I'll continue holding the stock.