Trade: NPS Pharmaceuticals (NPSP)

Notes:
Stock Ratings: 1 = buy at current stock prices, 2 = buy on a 5-10% dip in stock price, 3 = sell on a 5-10% increase in stock price, 4 = sell at current stock prices to raise cash.  Ratings are based upon 12-18 month outlook on stock direction and not necessarily related to moves I make due to financial positioning.

I have sold just over 40% of my holding in NPS Pharmaceuticals today at a price of $42.  The stock has sky-rocketed over 17% since its closing price on December 31 and 37.6% since December 17.  The move started on rumors regarding buyout interest increasing again and has subsequently been meet by NPSP working with Goldman Sachs to put itself up for sale and ask for initial bids - which will be completed tomorrow.  You take the dramatic move along with the sudden sale of the company and I feel it's important to take out my cost bases near its all-time highs.  The stock has surpassed $42 a couple times so far only to be quickly brought back down.  The $42 price tag is also around what many people expect the going rate to be for a buyout, though there has been an analyst upgrade recently that also puts a $50 price target based on revenues that can be earned on the anticipated FDA approval, which is anticipated to happen on January 24.  All this news and movement actually worries me a little.  If NPSP expects an approval and robust sales, why put themselves up for sale now?  With my investment out of the stock, I'm now "playing with the house's money," as the saying goes.  I may not make as much if the stock jumps again at the end of the month or if a buyout comes in better than expected, but my only downside risks now are in relation to how much I can profit from this stock pick.  I am already working on plans for the money I've pulled out to put into new speculation - likely also in the biotech sector, which I'll articulate in a new analysis at a later time. 

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