Auxilium Pharmaceuticals (NASDAQ: AUXL) is
a specialty biopharmaceutical company with a focus on developing products for urologists, endocrinologists, orthopedists and select primary care physicians. The firm markets Testim, a topical testosterone gel for the treatment of hypogonadism. It also has projects in clinical development for the treatment of Dupuytren's contracture, Peyronie's disease, Frozen Shoulder syndrome and overactive bladder.
The stock is up 48% over the past fifteen weeks, sparked by such issues as better than expected Q3 results, upside
guidance and subsequent affirmation of FY07 revenues, and positive clinic trial developments. The news has the stock cycling through a positive trading channel. The price is consolidating at the base of that channel, where oversold CCI, MACD and Stochastic technical parameters suggest the potential for a rise back toward the top. Correspondence of the stock's 30-day moving average to the base of the channel backs the rebound notion.
Brokers recommend the shares with three "strong buys," four "buys," four "holds" and one "underform." Analysts see a 30% average annual growth rate, through the next five years. The AUXL Sales Growth rate (48.73%) and EPS Growth rate (55.43%) compare favorably with industry, sector and S&P 500 averages. Institutions hold about 95% of the outstanding shares. Over the past 52 weeks, the stock has traded between $11.84 and $31.25. A stop-loss of $25.75 looks good here. Note that the firm is expected to report Q4 results in mid-February.
Larry Schutts is a contributing editor for Theflyonthewall.com and the Vice-President of Stockwinners.com. He does not hold positions in any of the stocks mentioned above.
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Reader Comments (Page 1 of 1)
2-14-2008 @ 8:26PM
Jack Benne said...
It seems that AUXL has peaked in the $35 range. Technical indicators show a downward trend as numerous small traders will now take profits, or be taken out by stop loss price points.
Further downgrades are indicated as follows:
Auxilium Pharma
(AUXL - Cramer's Take - Stockpickr) downgraded at Merrill Lynch to Neutral. Valuation call, as the stock is already pricing in 100% clinical success for Xiaflex.
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