Nabi Biopharmaceuticals (NABI)

Company

"Nabi Biopharmaceuticals leverages its experience and knowledge in powering the immune system to develop and market products that fight serious medical conditions. The company has two products on the market today: Nabi-HB® [Hepatitis B Immune Globulin (Human)], and Aloprim™ (allopurinol sodium) for Injection. Nabi Biopharmaceuticals is focused on developing products that address unmet medical needs and offer commercial opportunities in our core business areas: Hepatitis and transplant, Gram-positive bacterial infections and nicotine addiction." (company website)

NABI 3-month stock chart

Sell short

After peaking near the end of 2006, NABI has been trending down. Both the 50-day and 20-day averages are falling. It recently pierced the 200-day moving average (and upper Bollinger band) but could not hold that level.

  • Price momentum (PPO) — improving a bit but slower than three months ago
  • Trend (ADX) — strong, with selling pressure (-DI) above buying pressure (+DI)
  • Money flow (CMF) — strong outflow
  • Relative strength (RSI) — weakening over past three months
  • Volume — falling

Based on technical analysis, MarketEdge calls NABI a "short candidate" in a "strong downtrend trend."

Buy to cover

NABA 2-mo chart
gain Bottom line
18%

I decided to cover NABI today, even though the downtrend is still strong and unthreatened. It has been stretching the lower Bollinger band down for two weeks now, a very long time, and that is unlikely to continue much longer. NABI is also getting very close to last July's previous low, $4.67, that could provide some support. Earnings are due out next week, and that puts the Expectations game in play. Finally, pharma stocks are notoriously volatile, easily moved by the slightest news or rumor. Plus, I can bank $1 per share in gains at this point, a nice antidote to the stomach-churning plunge at the end of February. A profit is always a good thing — there's no reason to get greedy. (Well, there is, but you're not supposed to say that.)