Salix Pharmaceuticals, Ltd. (NASDAQ:SLXP)

nor sure if it will be Win, Place , or Show... but it will be in the winners circle near term

New Baker Brothers Holding.

http://caps.fool.com/Blogs/fund-trades/779590.
http://twitter.com/portefeuillefun.

I won't make the same mistake again with Salix. A few years ago I red-thumbed the stock because of a couple of setbacks in the pipeline, only to go hundreds of points under water on the pick because the true story of the company was Xifaxan which outperformed expectations tremendously. Once again, Salix is taking on water after the FDA issued a surprising CRL for Relistor for OIC in non-cancer pain and postponed the crofelemer NDA by six months. I believe the current pessimism will last until Salix once again reports record revenues for Xifaxan with the Q3 earnings beat in November.

Barron 6/15/11

strong pipline withhuge potential

Unusually high call volume at $25, $30, & $35 for 3/10

Near term catalyst - Positive results

http://seekingalpha.com/article/136379-fda-clinical-trial-calendar-updates-wye-svnt-amrn-isis-slxp-somx?source=feed

Their stock took a big hit a few months back when the FDA asked for more data on one of their drug trials. They have some drugs in their pipeline (stage 3 trials) that will cause the stock to recover as long as some of them pass. Undervalued at the current price.

Over-reaction to FDA asking for more data after other problems. There have been too many high-profile drug safety stories in the media and it is logical to expect it will cause the FDA to be more cautious in handing out approvals. Solid insider purchasing and the recent trading pattern seems very stable and moving upward in a way that is much less erratic than seen in many biotech stocks.

Approval will help offset the genericization of COLAZAL. Also, Inflammatory diseases need better media coverage and consumer education. There is huge potential for improving quality of life for cronic conditions that can, without effective long-term management, shorten life expectancy. This could be a good company to monitor in that space.

several months or more..took a big hit in Jan08, slowly gaining back..Yahoo screener pick

Good Management and moving in the right direction

Highly undervaled, great bargain in long run.

All in the tract

Favorable risk / reward profile. Comparative analysis:
http://f1.grp.yahoofs.com/v1/8EF3R8IApDlbI1SUEwj9ACPoO-N506V3BymU7tTVdt21_4PxNLCn-oJ6KY_K8iQ5Z-yn652fM-b9S1MpHcVrFg/VOps/VOps%2007.11.30.xls

this stock killed me since i bought it at 16. the products are going nowhere. they lack luster. usually good stocks don't drop like this.

Forbes article "True Believer Stocks"

Valuation at this level is good. Should be a 20 dollar stock in 2008. Institutional ownership is 105% according to Yahoo Finance... If the institutions are that confident, why aren't you?