MEMY was another biotech that got hammered when one of its investigative drugs proved ineffective. However, if you carefully examine that "failure," you will see it was, at best, an ancilliary exploration of an application of a drug destined for other applications. Clearly, MEMY will be issuing promised Phase II results by Q4 of 2007. No questions that this is a boom or bust situation but at sub-$3 price, the upside potential for drug therapies targeting Alzheimers, schizophrenia, and bipolar disorder is highly appealing.
This entry point of $2.25 to $2.35 is largely based upon techincal factors that are now focusing on growing daily volume with noticeable supports -- first, above $2; then above $2.25. If we continue to close above $2.25 for the next week, this appears to be a reasonable entry-point. Do NOT load up on this one. Highly speculative and given recent disappointment, you must factor in the likelihood that a $3 trade could easily go to $1 overnight --- or to $10.
$2.31 (05/14/07)
