Sunday, July 6, 2014

"You want Fireworks for your 4th of July? I am going to bring you an excellent SPECULATIVE stock pick (trade). MannKind Inc. and their just FDA-approved Diabetes Type 1 and Type 2 treatment and inhale-able delivery system"

Dow Jones Industrial Average 17,068.26 (UP , and ALL-Time high) Week ending 07-04-2014

Mannkind Corporation (Symbol MNKD, $10.00)

Last Friday, a few minutes before the market closed for the weekend, Mannkind Corp. announced that the "U.S. Food & Drug Administration (FDA) has approved AFREZZA® (insulin human) Inhalation Powder to improve glycemic control in adult patients with diabetes mellitus."

Investors looked at each other like deer in the headlights, and started coming up with reason after reason why they should not buy the stock. Smokers and people with Asthma cannot use it; it's up 175% already and has to go down; it could cause ACUTE BRONCHOSPASM IN PATIENTS WITH CHRONIC LUNG DISEASE; they don't have any partners lined up to produce it; there will be a secondary offering. Barron's headline was, "Mannkind Ripe for Profit-Taking After Afrezza Aproval".

Now really people, stand back and think about it. There are 29 Million people and a growing number with Diabetes. The market capitalization of Mannkind is $3.869 Billion dollars. I could see some company like Merck or Pfizer throwing 10 Billion dollars to own the rights to this.

The press release states:  " AFREZZA® (uh-FREZZ-uh) is a novel, rapid-acting inhaled insulin therapy indicated to improve glycemic control in adult patients with diabetes mellitus. The product consists of AFREZZA Inhalation Powder delivered using a small, discreet and easy-to-use inhaler. Administered at the start of a meal, AFREZZA dissolves rapidly upon inhalation to the deep lung and delivers insulin quickly to the bloodstream. Peak insulin levels are achieved within 12 to 15 minutes of administration, and decline to baseline by approximately 180 minutes.
"The FDA approval of AFREZZA provides healthcare professionals with an important new safe and effective treatment option for patients with diabetes," said Janet McGill, M.D., Professor of Medicine at Washington University School of Medicine. "We have seen in clinical studies that the combination of rapid action, injection-free delivery and ease of use makes AFREZZA a welcome alternative for many patients who require insulin."  
This stock may dip down to 8 bucks in the interim, with their being a 30% Short Stock Position in the stock, but it won't stay there. Are you going to risk not owning this stock long term because of a short term technical trade position?  Have you forgotten Steve Job's Stanford college commencement speech in my blog side column where he told you to, "Stay Hungry and Stay Foolish"??
Alfred Mann, the Inventor
So here is the way you roll with this. With the negative Barron's article this weekend and some nervous nillies taking their 100% profits, the stock will drop on Monday to a range of 8.65 to 9.25. At this point, you should start taking a position. If it does not drop down to there, then No trade.

 I think you can then hold this and wait for a partner to jump in. I think you will have a trade to 14 to 16 dollars a share. At that point, you sell your position and walk away with your money. Not complicated. If you buy at $9.00 and sell at $15.00, you would have a 66.6% gain.

I must emphasis strongly that this is not the mortgage money you are putting on this. It is your designated "Mad Money", basically a Red or Black at the casino spin of the wheel. This stock could go back to $5.00 if they do not get a partner, although that is unlikely.

On to the Tour de France! I like the Netherlands to win the FIFA World Cup, if you are betting on that.



  1. "I broke down and purchased some shares at $9.75, It appears that there is some quiet short covering going on that is propping up the price of the stock. Freewilly

  2. Here is your chance to buy at $9.00 or less - 07-25-2014.

  3. Mannkind Inc. will report earnings on 08-07-2014. You can purchase the stock for $8.00 right now. 08-02-2014.

  4. I just bought some shares at $6.92. Time for Sanofi and Mannkind to role up their sleeves and get to work generating Revenue. I am LONG this position.