Salix Pharmaceuticals (SLXP)

Company

"Salix Pharmaceuticals, Ltd., headquartered in Raleigh, North Carolina, develops and markets prescription pharmaceutical products for the treatment of gastrointestinal diseases. Salix's strategy is to in-license late-stage or marketed proprietary therapeutic drugs, complete any required development and regulatory submission of these products, and market them through the Company's gastroenterology specialty sales and marketing team. Salix also markets XIFAXAN®, VISICOL®, OSMOPREP™, AZASAN®, ANUSOL-HC® and PROCTOCORT®. In August 2006, the FDA approved MOVIPREP® for bowel cleansing prior to colonoscopy, and we intend to launch the product in mid-fourth quarter 2006. Balsalazide tablets, Granulated Mesalamine, SANVAR® (600 ug vials vapreotide acetate powder) and Xifaxan for additional indications are under development." (company website)

SLXP 3-month stock chart

Buy

Salix is recovering from a steep downtrend in the first part of 2006. At the beginning of 2007, it began rising again after a pullback.

  • Price momentum (PPO) — rising sharply
  • Trend (ADX) — very strong
  • Money flow (CMF) — brisk inflow
  • Relative strength (RSI) — has gone from weak to strong
  • Volume — more or less stable

Based on technical analysis, MarketEdge calls SLXP a "strong buy" in a "strong upward trend."

SLXP 2-month chart SLXP 2-month chart

Sell

loss Bottom line
-15%

Like everything else in my portfolio, SLXP got slammed in the market meltdown at the end of February. Unlike almost everything else, SLXP has not recovered and continues to deteriorate. I've already let it go far too long, and with losses exceeding $2 per share, it was time to bail out.