Exelixis, Inc. (EXEL)

Thanks for submission on EXEL LA TAUPE.

Exelixis is a Biotech company that still in development phase that's been around since 1994. They are trying create a pipeline of drug therapies for cancer and other life threatening diseases. It's headed by two former investment bankers who are also PHD's. The management has a list of impressive resumes and some very well placed people that know how to raise money and have wide reaching contacts from many walks of life.

The have several major programs in place with several of the big name companies like Bristol Meyers-Squibb (BMY). They receive funding from those companies and others for research in hopes of finding cures and prevent disease.

The stock itself has continued to slide down recently and has very little in the way of support by analysts. It's never made a profit, negative cash flow, is thinly traded (little volume) and 65% of the stock is owned by institutions. Out of the 118 institutions that own shares in EXEL  FMR LLC (14.94%), T Rowe Price (11.12% and Fidelity Growth company fund (9.84%) represent a total of 35.9% as of 9/30/09 of the shares outstanding  according to Yahoo finance.

On a Technical level it has some support at $5.98 which is it's 200 day moving average.

This is not a stock to trade in my opinion. The institutions and the people involved certainly are an impressive list of names and they are doing commendable work. With companies of this nature and business it's hit or miss. How long it takes for them to find an approved and marketable drug is impossible to say. They still have to get FDA approval on any drugs they do find in clinical trials that work. 

If you believe in the long term viability of what they do and understand the product then maybe one day it will be a home run. 

Marc Roth

Remember: Pigs get fat, Hogs get slaughtered. Be a Pig!




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