Tuesday, March 1, 2011

Dyax Corp. (NASDAQ: DYAX) Q2 2011 Price Target

Recent price: 1.75$
P/E Ratio: -
3 Months Target Price: 2.20$

Company Description
As it can be seen on their website, Dyax corporation is a fully integrated biopharmaceutical company focused on discovering, developing and commercializing novel biotherapeutics for unmet medical needs, with an emphasis on inflammatory and oncology indications. We utilize our proprietary drug discovery technology, phage display, to identify antibody, small protein and peptide compounds for clinical development. Dyax also leverages this technology broadly with over 70 revenue generating licenses and collaborations for therapeutic discovery, as well as in non-core areas such as affinity separations, diagnostic imaging, and research reagents.

Confidence Margins
Strong resistance $2.58 (+47%)
Light resistance $2.23 (+27%)
Light support $1.70 (-3%)
Strong support $1.50 (-15%)

Another company that saw poor fourth quarter results. The stock has been on a downtrend for the past couple of months into unexplored territories since 2003. If the downside supports hold strong, there should be long term benefits to acquiring a position in Dyax Corporation.

Entry strategy
For the cautious investor:
Buy the stock for 1.80$ or less but stay informed for coming developments and most importantly, the light support if the stock comes to pass across it.

For the risk-taking trader:
A position in the August 2011 2.50$ out of the money call option will yield a satisfactory return to investors, they can be acquired for about 25$ per contract.

Exit Strategy
For the cautious investor:
Sell when the stock reaches 2.20$, or keep it until 2.50$ if you are more bullish in your own analysis.

For the risk-taking trader:
The contracts should be kept until the underlying reaches around 2.20$, 2.50 if you are more bullish. This should provide a very interesting return if the underlying reaches the target price as the contracts will get in the money.

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