Biogen Idec An Attractive Biotech Name

Ascendere Weekly Ranking Update:  December 10, 2010

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Every week, we include in this report a list of the highest quality and lowest quality stocks as defined by four key factors:

1. Relative Value;
2. Operating Momentum;
3. Analyst Revision Momentum; and
4. Fundamental Quality.

At the end of each month, we take roughly 1/3 of the stocks on this list to construct our various long/short and long-only model portfolios based on real trade data.  But as you can read below, there are several other ways to use this data.

This week, 63 stocks make the “high-quality” list, in line with 63 last week, but with 8 additions and 8 deletions.  32 stocks make the “low-quality” list, up from 26 last week with 7 additions and 1 deletion.  We have not seen any solid Healthcare names on our list for quite some time, but this might be changing with the addition of the most interesting new “high-quality” name this week, biotech company Biogen Idec Inc. (BIIB).

Three ways to use this newsletter:

1. Build your own hedge fund. Use data in this report at discretion or as an enhancement to our model portfolio strategy newsletter.
2. Anticipate sell side research ratings changes. It is not uncommon to find these stocks presaging changes to sell side price targets, ratings or conviction lists.  We have provided numerous examples to this effect.
3. Generate relevant long-term ideas for further study. Buy and hold still does work.  We do the heavy lifting and find you “high-quality” stocks; you provide the incremental research time and effort.

Examples of just a few recent sell side actions that we have preempted since November 30, 2010

• 12/9/2010: United Continental Holdings (UAL) — Morgan Stanley named the stock a long Research Tactical Idea.
• 12/9/2010: Freeport McMoRan (FCX) — Credit Suisse raised its price target to $130 from $110, making it the highest price target on the Street.
• 12/9/2010 Waddell & Reed (WDR) — Barclays upgraded the stock to Overweight from Equal Weight, and raised its price target to $41 from $30.
• 12/3/2010: RPC, Inc. (RES) – Canaccord Genuity raised its price target to $37 from $30.
• 12/2/2010: Ares Capital Corporation (ARCC) — was named a long Research Tactical Idea at Morgan Stanley.

Biogen Idec Inc.
Biogen Idec Inc. (BIIB) is a $15.8b market cap biotechnology company that “discovers, develops, manufactures and markets biological products for the treatment of serious diseases with a focus on neurological disorders.”  Biogen Idec was formed in November 2003 when IDEC Pharmaceutical Corporation closed its purchase of Biogen Inc. in an all-stock $7.5b deal.  It currently markets four products:  AVONEX, RITUXAN, TYSABRI, and FUMADERM, for the treatment of multiple sclerosis (MS), non-Hodgkin's lymphoma (NHL), rheumatoid arthritis (RA), Crohn's disease, chronic lymphocytic leukemia (CLL) and psoriasis.  It has an agreement in place with Genentech with regards to the development and commercialization of a MS drug and a NHL drug.

What catches our attention about this company is This content is for members only.