“Make 66% On This Biotech Stock By May 1” Steve Christ

By Travis Johnson, Stock Gumshoe, December 18, 2009

This article was originally published in the Friday File for the Irregulars on November 6, and a nearly identical ad is now circulating. The article has not been updated, but the stock is essentially unchanged in price.

The letter, which is an ad for The Wealth Advisory, edited by Steve Christ, teases us about a buyout candidate biotech company, first making the argument that the market is hot for little research firms and that big pharma is thirsting after their drug candidates to fill in depleted pipelines …

“Earlier this year, a four-year-old Massachusetts-based biotech company with just 60 employees was bought out by a pharmaceutical giant for $720 million.

“Nearly a quarter billion for a company that didn’t even have a product on the market.

“It’s just one of a number of such eye-popping buy-out deals that have been sweeping the biotech sector….

“In the next few minutes, I’m going to tell you about Big Pharma’s next big prospect… the company for which my colleague Steve Christ is guaranteeing 66% gains… at a minimum.

“And I’d like you to see exactly what this aggressive buy-out campaign can do for your bottom line.

“How Big Pharma ‘Shake and Bakes’ Research and Development

“Right now, the market for biotech startups is at an all-time high.

“Companies that you’ve never heard of that are on the verge of major breakthroughs… selling for BILLIONS.”

Now who wouldn’t love that? Nothing like a nice big buyout at a huge premium to put a smile on the face of any investor.

So what is this biotech stock? It’s targeting cancer, which is always a way to get attention from investors (and, of course, make a big difference to public health) …

“Its goal has been one of the most elusive in all of medical history.

“In short, this company is working towards…

“Killing the Killer: Could Cancer’s End Be In Reach?

“According to the American Cancer Institutes, it cost the American economy $228.1 Billion in 2008…

“…As it took 565,000 American lives.

“Its death rate has gone virtually unchanged since 1950.

“And over the next decade, 6 million more American families will feel the loss of a loved one to cancer.”

Sooo … which cancer-fighter? Some clues about exactly what their drug does …

“A Technology That Can ‘Order’ A Tumor…

“To Shrivel Up And Die

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“The technology was made possible by the discovery of an enzyme called telomerase.

“When this enzyme is overproduced, cells divide indefinitely without aging…

“And it’s this uncontrolled cell division that creates malignant tumors… cancer….

“Truth is for this biotech company, the cure for cancer may be just the beginning.

“That’s because the company that figures out how to manipulate telomerase with reliability… will have the world’s population in its hands.

“Not only will they be able to make cancer cells wither and die…

“It will also slow down the aging process of healthy cells.

“And that’s exactly what this company is perfecting today.

“It’s pioneering the science of regenerative medicine… by literally creating new tissue. (This is the same company that developed a spinal drug that allowed paralyzed rats to walk once again.)

“Right now, their new generation of anti-cancer drugs is in Phase 2 trials. And a major pharmaceutical company is highly interested in the technology.”

So those are some decent clues … but we also get some clues about the stock itself:

“The value of this stock has been rising — slowly but steadily — since early on in the buyout boom.

“But just recently, the number of call options has shot up dramatically…

“…With the January call volume growing to over 10 times that of November’s.

“If these options investors are right, the price of the stock will rise 66% in the next three months alone!

“Making it one of the hottest — yet on