Kyle Dennis of BiotechBreakouts.com says that Exelixis Inc. (EXEL) is poised to move thanks to late-stage approvals for two different cancer drugs on the calendar for mid-January and February. Dennis said that Exelis is a play on three levels; it has catalysts, solid fundamentals and attractive technicals, noting that the stock is at the bottom end of an upward-sloping channel. While he did note that Exelixis has a high price/earnings ratio of 55, he noted that the PEG ratio is a more normal 1.19; beyond the fundamentals and the stock’s chart, he liked that the company’s portfolio of cancer drugs could make it a potential takeover target. Dennis said Exelixis is a great value under $28 per share, with a price target back to the recent 52-week high of $32,setting a stop-loss at $25.50, which would be a breakdown of the upward channel.
Kyle Dennis is a catalyst – and events-based trader who runs BiotechBreakouts.com. He had no shares, options or open orders in either EXEL when this interview was recorded on Dec. 1, but had the stock on his watch list and anticipated buying it under $28 per share, as described in this conversation. The Raging Bull podcast features experts from the site talking with Raging Bull editor Chuck Jaffe on his show, “Money Life with Chuck Jaffe.” You can learn more about Chuck’s daily hour of market and personal-finance chat at MoneyLifeShow.com; you can subscribe to the Raging Bull podcast via iTunes and other podcast providers.