December 1, 2010 | In: Healthcare

BIOS (BioScrip Inc.) Reversing the Trend

2 days ago I have written about BIOS, and how it was at a bargain price, yesterday the stock almost touched $4 (apparently there is strong support at this level), and today, the stock reversed the downward trend on 2 times the average volume and it went up 10%. Take a look at the stock chart.

Now that the stock is up that much, the bullish sentiment is back, and tomorrow you’ll have a lot of investors entering the stock at the $4.50 level. It’ll be interesting to see how high can the stock go by the end of this week, again, if the bullish sentiment is maintained (which, judging by the today’s volume, most probably will).

BIOS was trading at almost $6 (a bit over a month ago) after it fell to the $4 level end of July.

This is a strong pharmaceutical company, and with a price so cheap, it can be easily bought by a mega pharmaceutical, at the price of $20/share, perhaps? Very possibly, this is the M&A Gold Rush.

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