HALO Daily safe bet pharma swing

NASDAQ:HALO   Halozyme Therapeutics, Inc.
VRTX I already own, looking to add some more pharma in due time.

HALO has good upside, I calculate +25 pct from 41.16 buy point to dashed line 51.63. 21/50/100 EMA crossover.

17.5 pct ROIC, 5.1 pct free cash flow yield (so so), accelerating revenue growth, buybacks, ROE 105%, Operating margin, 42.49 pct. Upward revised analyst projections.

The big negative, it has an obscene debt to equity ratio, and I do not like debt. Nevertheless, I would play this as a shorter term swing play to take advantage of pharma seasonality in December.

I would set an alert at the fib line at 41.16, which also is near the 100 day EMA (red line) and right on the top of the bullish cloud. If seasonality plays out correctly, we are looking at an entry in mid November. There could be an easy ride upward since the volume profile thins out above, and there is a 6 plus percent short ratio on the stock. It is showing what looks like a cup & handle (sort of), so it may not get below the bottom of the handle, so we will see what plays out.


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