Trading Alert for 5/31/2011

Two symbols for Tuesday 5/31 - $KV.A and $FEED. I was glad to see $KV.A back to trading for bulls. $KV.A has been down almost 80% since it's high of $13.55 just 2 months ago. Shares of the company have traded as low as $1.13, and as high as $13.55 this year. Why? You probably heard this soap-opera story. $KV.A has an exclusive and unique pre-term birth drug Makena - drug approved by FDA. Can you imagine that? Of course, stock price sky rocketed. The only problem - Makena at $1,500 per dose is significantly more expensive than an alternative (though not as good as Makena) formula drugs for $15 per injection. Free fall started after FDA said that it would not prevent doctors from prescribing cheaper drug combinations, thus reducing $KV.A's near-monopoly power on the pre-term birth drug market. But the drug is still here, it is approved and it WORKS! What else does a biotech pharma company needs? The rest is a matter of management technique They already reduced price from $1500 to $600+ More price cuts on the way... In any case, it's all manageable. $KV.A stock price is due for some healthy recovery and most likely this recovery started tonight. More bullish action is expected on Tuesday 5/31.

As for $FEED, look at the chart. It can't go lower than it is right now :-) Another 80% market value loser just in few months is ready for a strong bounce up starting next week.

Backtested Symbol: $KV.A
Strategy: Pennystocks100 (5 min chart)
Period: May 27, 2010 - May 27, 2011
# Win: 0
# Loss: 1
Winners: 0%
Profit-Loss%: -0.27%

Backtested Symbol: $FEED
Strategy: Pennystocks100 (5 min chart)
Period: May 27, 2010 - May 27, 2011
# Win: 0
# Loss: 0
Winners: 0%
Profit-Loss%: +0%