Vertex Pharmaceuticals - VRTX - close: 36.32 change: +0.64

Stop Loss: 33.75
Target(s): 39.50
Current Gain/Loss: unopened
Time Frame: up to the February earnings
New Positions: Yes, see below

Company Description

Why We Like It:
The 30th annual J.P.Morgan Healthcare conference began this week and it has investors thinking about healthcare, drug makers, and biotech stocks. The sector has been showing strength lately. Recent acquisitions in this space has some trades speculating that VRTX might be a takeover candidate.

The stock has recently broken out from its $32-34 trading range and the $34.00 level should be new support. I am a little hesitant to chase it here so we are listing a buy-the-dip entry point at $35.25 with a stop loss at $33.75. If triggered our target is $39.50 but we do not want to hold over the early February earnings report (unconfirmed at this time).

Trigger @ 35.25

Suggested Position: buy VRTX stock @ 35.25

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Annotated chart:

Entry on January xx at $ xx.xx
Earnings Date 02/02/12 (unconfirmed)
Average Daily Volume = 3.0 million
Listed on January 10, 2011