Went back into Genzyme again @ 48.35 after noticing it hold nicely above the $47.65 support. Although the support cannot be seen in the daily, it can be seen in the weekly charts dating back to 2004.
Hopefully this level will hold now even though Goldman Sachs initiated a downgrade today. No real target price just yet, will wait for how the stock reacts at the $50.18 level. Stop loss placed @ $47.50
The stock has gone down huge since the announcement that two of their top selling drugs were halted due to contamination. They said that the cells that make the protein for the medicines Cerezyme and Fabrazyme were contaminated by a virus that came from a nutrient used in the manufacturing process. But still, even though they are contaminated, there are no alternative treatments available in the US.
The production interruption is only temporary, and the company expects the plant to be fully operational again in about a month.
Technically, the stock has fallen very close near support yesterday and even though yesterday's candle stick is green, it’s supposed to be red signaling a drop of 4% yesterday at a close of $52.75. I bought this stock at $52.80 and so far I am content. Stock gained 5% so far this morning and is looking good with a full bar, hope it continues and closes with it.
Source: Bloomberg