DNA Moving on Approval

Take Profits on Your “Aftermath” Position

By Bryan Bottarelli
Wednesday, July 05, 2006 12:31 PM EST
Wed, 5 Jul 2006 17:31:00 GMT

PLAY: Sell your DNA November 80 Calls (DWN LP) at or above $9.50, good for the day.

Dear Bottarelli Research Member,

Last Friday, the Food and Drug Administration approved Genentech’s (DNA – NYSE) age-related blindness drug Lucentis — a retina medication that DNA plans to sell for $1,950 per dose.

Lucentis treats a condition where abnormal blood vessels grow over the retina and leak — causing scar tissue and destroying a person’s central field of vision. Many experts predict that (like most of DNA’s other drugs) Lucentis will quickly become the best drug choice among the alternatives, potentially adding $800 million in sales to DNA’s bottom line. As you can expect, shares of DNA have been rallying on the news.

DNA

As one of our longstanding “Aftermath Report” positions, you are holding the DNA November 80 Calls (DWN LP) for an average entry price of $6.75. As I write, these calls trade between $9.80 and $10.10, good for a strong 48% gainer. If you haven’t already done so, I think it’s officially time to take your profits off the table:

PLAY: Sell your DNA November 80 Calls (DWN LP) at or above $9.50, good for the day.

Lock and load,

Sincerely,

Bryan Bottarelli

Bryan Bottarelli
Editor, Bottarelli Research

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