Wednesday, April 11, 2007

Adding Ciphergen To Watch List

Shares of Ciphergen Biosystems, Inc. (CIPH) have been hammered the previous two days after the company’s auditors issued a going concern qualification in the recent 10-K annual filing. As of today's closing shares are down 25%. Fundamentally, the company should be able to secure the required funding, due to continued R & D success of their Ovarian and Prostate biomarker technology and the backing of two well established multi-billion dollar companies.

That being said, I believe the near term will provide substantial volatility as CIPH moves towards oversold territory. Personally, I am looking for strong support in the $1.00-.90 range. If they can hold at those levels CIPH maybe an attractive buy as the market corrects the overreaction.

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