Transactions to be completed on Monday, April 4:

Using the closing prices of Monday, April 4, we will sell all positions of ARQL in both portfolios. A 1% commission will be charged on each transaction.

Transactions to be completed on Monday, March 7th:

Using the closing prices of Monday, March 7, we will sell all positions of ONXX in both portfolios. A 1% commission will be charged on each transaction.

Transactions completed on Monday, November 15th:

As indicated in the last issue, using the closing prices of Monday, November 15th, we covered our short position of VVUS in both portfolios. A 1% commission was charged on each transaction.

Transactions completed on Monday, October 25th:

As indicated in the last issue, using the closing prices of Monday, October 25th, we purchased 25,000 shares of NVAX in the Model portfolio and 10,000 shares of NVAX in the Trader’s Portfolio. In addition, we purchased 30,000 shares of PVCT.OB in the Model Portfolio. A 1% commission was charged on each transaction.

Transactions for Monday, November 15th:

Using the closing prices of Monday, November 15th, we cover our short position of VVUS in both portfolios. A 1% commission will be charged on each transaction.

Transactions completed on Monday, October 11th:

As indicated in the last issue, using the closing prices of Monday, October 11th, we purchased 1,000 shares of CELG in the Model Portfolio at $57.65 per share. A 1% commission was charged on this transaction.

Transactions for Monday, October 25:

Using the closing prices of Monday, October 25th, we will purchase 25,000 shares of NVAX in the Model portfolio and 10,000 shares of NVAX in the Trader’s Portfolio. In addition, we will purchase 30,000 shares of PVCT.OB in the Model Portfolio. A 1% commission will be charged on each transaction.

Transactions completed on Monday, September 27:

As indicated in the last issue, using the closing prices of Monday, September 27th, in the Model portfolio we covered the 10,000 shares of ARNA and in the Trader’s Portfolio we covered the 5,000 shares of ARNA at $1.55 per share. We sold short an additional 5,000 shares of VVUS in the Model Portfolio and sold short 5,000 shares of VVUS in the Trader Portfolio at the price of $6.74 per share. We also purchased 2,000 shares of OGXI in the Model Portfolio and 500 shares of OGXI in the Trader’s Portfolio at $13.22 per share. A 1% commission was charged on each transaction.

Transactions for Monday, October 11:

Using the closing prices of Monday, October 11th, we will purchase 1,000 shares of CELG in the Model portfolio. A 1% commission will be charged on the transaction.

Transactions completed on Monday, September 13:

As we indicated in the last issue, we bought 1,000 Sept. $5 puts of VVUS in the Model Portfolio and 1,000 Sept. $5 puts of VVUS in the Trader’s Portfolio. These puts expired worthless on September 17th at a cost of $9,090 per portfolio, which was subtracted from each porfolio. We also sold short 10,000 shares of VVUS in the Model Portfolio. A 1% commission was charged on each transaction using the closing prices of Monday, September 13.

Transactions for Monday, September 27:

Using the closing prices of Monday, September 27th, in the Model portfolio we will cover the 10,000 shares of ARNA and in the Trader’s Portfolio we will cover the 5,000 shares of ARNA. We will sell short an additional 5,000 shares of VVUS in the Model Portfolio and we will sell short 5,000 shares of VVUS in the Trader Portfolio. We will also purchase 2,000 shares of OGXI in the Model Portfolio and 500 shares of OGXI in the Trader’s Portfolio. A 1% commission will be charged on each transaction.

Transactions for Monday, September 13, 2010:

As mentioned above, using Monday’s prices, we will buy 1,000 September $5 puts of VVUS in the Model Portfolio and 1,000 September $5 puts of VVUS in the Trader’s Portfolio. We are also shorting 10,000 shares in the Model Portfolio. A 1% commission will be charged on each transaction.

Transactions completed Monday, August 30:

As indicated in the last issue, we made the following transactions in the Portfolios using the closing prices of Monday, August 30. A 1% commission was charged on each transaction.

In the Model Portfolio we sold: All of the CELG, ELN, GNVC, and MDCO. We also sold one half of the BMRN, INCY, ISIS, and ONXX positions.

In the Trader’s Portfolio we sold: All of the BMRN, CELG, ELN, GNVC, ISIS, and MDCO. We sold one half of INCY and ONXX.

In the Model Portfolio purchased 15,000 shares of ASTM, 4,000 shares of ALKS and shorted 10,000 shares of ARNA.

In the Trader’s Portfolio we purchased 2,000 shares of ALKS and shorted 5,000 shares of ARNA.

The difficulty in the markets the last few weeks has forced us to take a step back and evaluate our best investment strategy going forward. While there has been renewed worry and discussion about a "double-dip" recession, those who've been unemployed for the last 2+ years might fairly argue that the up-tick never happened and that the economic news has been nothing but bad for a while now. Some of the greatest bull runs in the history of stock markets (like the one we left a few months ago) have happened during - and given back most of their gains to - tough economic times (which continue). Depending on your positions, now might be a time to wait and see with the markets, with the hope that cheap buying opportunities are on the horizon. The continued low-yields on 10 year treasury notes suggest that many investors are holding their cash on the sidelines with concern that near-term movements will be in the negative direction. The combination of market factors and events affecting specific companies means that in the short term it will be valuable to consider alternative investment
strategies.

We also believe that this market needs to be hedged, adding to the value of new short sale recommendations. The market has been very punishing to companies that have had mis-steps - as was experienced by IMGN this week when the T-DM1 filing was delayed. This also makes it attractive to find short sale candidates that might have bad news, such as ARNA, because this market can destroy a company that faces real setbacks. We are making some significant sales in both portfolios as we need to raise cash to for specific trades and new recommendations. In addition, we want more flexibility given the continued fluctuations in the broad market which have made it almost impossible for sustained moves in stocks. We also believe that this market may have some very attractive short-term opportunities that we want to fully participate in now, and in the near future.

In the Model Portfolio we are selling: All of the CELG, ELN, GNVC, and MDCO. We will sell one half of the BMRN, INCY, ISIS, and ONXX positions.

In the Trader’s Portfolio we are selling: All of the BMRN, CELG, ELN, GNVC, ISIS, and MDCO. We will sell one half of INCY and ONXX.

In the Model Portfolio we will purchase 15,000 shares of ASTM, 3,230 shares of ALKS and short sale 10,000 shares of ARNA.

In the Trader’s Portfolio we will purchase 2,000 shares of ALKS and short sale 5,000 shares of ARNA.

As per our last issue, we sold 5,000 shares of IMGN in the Model Portfolio shorted VVUS with the proceeds using the closing prices of Monday July 12. . In the Trader’s Portfolio we sold 1,875 shares of IMGN and shorted VVUS with the proceeds using the closing prices of Monday July 12.

In the Model Portfolio we will sell 5,000 shares of IMGN and short VVUS with the proceeds. In the Trader’s Portfolio we will sell 1,875 IMGN and short VVUS with the proceeds. All transactions will use Monday, July 12 closing prices. A 1% commission will be charged on each transaction.

As mentioned above, using Thursday’s closing prices, we sold 500 shares of BIIB in the Model and all 188 shares Trader’s Portfolios.

In the Model Portfolio we also purchased 2000 shares of ARQL and 10000 shares of PVCT.OB and in the Trader’s Portfolio we purchased 2000 shares of ARQL and 5000 shares of PVCT.OB using the closing prices from Thursday, May 20th. A 1% commission was charged on each transaction.

As per our last newsletter, we sold 250 shares of CELG at $55.68/share, 1000 shares of ELN at $7.34/share and 1005 shares of MDCO at $11.59/share in the Model Portfolio using the prices of Monday September 28th.

We also purchased 1000 shares of OGXI in the Model Portfolio and 1500 shares in the Trader’s Portfolio. using the closing price of $36.82/share from September 28, 2009. A 1% commission was charged on each transaction.

On Monday, we will sell 250 shares of CELG and 1000 shares of ELN and 1005 shares of MDCO in the Model Portfolio.

We will also purchase 1000+ shares of OGXI in the Model Portfolio and 1500 shares in the Trader’s Portfolio. using the closing price from Monday, September 28th.. A 1% commission was charged on each transaction.

As per the last issue of MTSL, we closed out the 4000 shares of MDVN position in the Trader’s Portfolio on Monday, August 31st with the closing price of $25.32. A 1% commission was charged on the transaction.

As mentioned in the previous issue, we sold all remaining BCRX positions in the Model Portfolio and Trader’s Portfolio using the closing price of $1.85 of from Monday, April 20th.

We also bought 2000 shares of BMRN (at $12.27/share) and 5000 shares of SGMO (at $4.65/share) in the Model Portfolio and 2000 shares of BMRN and 5000 shares of SGMO in the Trader’s Portfolio. A 1% commission was charged on each transaction.

We will sell all remaining BCRX positions in the Model Portfolio and Trader’s Portfolio using the closing price from Monday, April 20th.

On Monday, we will also purchase 2000 shares of BMRN and 5000 shares of SGMO in the Model Portfolio and 2000 shares of BMRN and 5000 shares of SGMO in the Trader’s Portfolio. A 1% commission was charged on each transaction.

As per the Tuesday, March 31, Special Update, we sold our entire ARNA positions in both the Model and the Trader’s Portfolios using the same day’s closing price of $3.01. A 1% commission was charged on each transaction.

We also sold DNA from both portfolios with the price DNA shares were tendered to Roche at $95 per share on March 25. A 1% commission was charged on each transaction.

We have dropped coverage of both ARNA and DNA.

As we stated in the last newsletter, we are sold both IDEV and CXM from both portfolios using the closing prices of Monday, January 12, 2009. In addition, we sold half of all the long positions in the Trader’s Portfolio using the closing prices of Monday, January 12, 2009.

We are selling both IDEV and CXM from both portfolios using the closing prices of Monday, January 12, 2009.

A combination of the market’s recent strength and the approach of earnings season are making us nervous. The danger of many companies not just reporting bad earnings, but that they will also warn yet again of worse than predicted numbers would be very bad news for the equity markets and lead a major sell-off and test of last year’s lows. In addition, the biotechs have historically sold-off during or right after JP Morgan as all the expected news flow for the near-term should all be announced next week. Thus, we are also going to sell half of all the long positions in the Trader’s Portfolio to go off of margin. We will not sell any of our short position in Medivation as we expect it to get hit hard in any market down drafts.