Setting Up For A Diabetes Squeeze

Here's a great analysis and why we too are LONG on Amylin. It's been amazing to watch a stock go down after 2 FDA appovals but patience will have rewards. But then again who says the market is ever logical

"The fact of the matter is the street is dead wrong on Amylin, and this is buying opportunity if there ever was one," says Kliff. (David Kliff, publisher of Diabetic Investor, recommends buying shares of Amylin). There are 13 million people diagnosed with diabetes in the United States and that 90% to 95% fall into the Type 2 category, which means the Type 2 patient population ranges from 11.7 million to 12.35 million patients." Kliff estimates that 65% to 75% of these patients are using one or more oral medications to control their diabetes, which puts the potential market size for Byetta somewhere around 8.4 million patients. Amylin shares closed Tuesday at $15.05, representing the lowest closing price since late March of 2003. Shares of Amylin are down more than 35% in the past 12 months. With more than 17% of Amylin shares sold short as of May 10, Kliff believes that a huge short squeeze is in the works, with "an easy ten points" added to Amylin's share price in the coming weeks or months

Setting Up For A Diabetes Squeeze - Forbes.com

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