Genzyme ( GENZ ) saw its shares break out last week from $62.5 to over $68 on higher than average volume. The weekly chart below demonstrates this movement and its significance as it broke a long term trend of lower highs that started in 2005.
This move was catalyzed by the O ctober 4 th vote by Bioenvision shareholders to decide the fate of the sale of the company to Genzyme .
In addition, on Friday, Genzyme announced approval of Elaprase , its enzyme replacement therapy to treat Hunter syndrome. The company is seeking approval in other countries as well.
I believe this latest strong should be considered a great buying opportunity. The stock has had a strong move this week and may move sideways for some time but the charts signal a break out and the stock should move towards new highs. I have previously mentioned the low historical valuation of GENZ which was trading at 15.9 times 2008 earnings (click here to see that article). I anticipate $80 price per share within 3-6 months.
Bottom line: Buy GENZ for the short and long term potential.
Disclosure: The author has a long position in this stock
$72.97 (12/06/07)
