Friday, March 19, 2004

Captain Capitalism is here again to spread the good news. This month's pick is OSI Pharmaceuticals, Inc. (OSIP), a pharmaceutical company whose stock is currently selling for $38.81 per share. The $40 April covered calls are paying $3.90 a share, a 10% return over four weeks. It has all the typical pros and cons for a rising pharmaceutical company - several promising drugs in the pipeline, specializing in oncology applications, and a negative cash flow until it has major product on the market.

In keeping with the ideal of better informed investors make better investors, I'm going to disclose how well last month's pick did. Last month's pick, Sepracor Inc., cost $28.29 a share when written up in the Big Tent. It currently sells for $46.47 a share. Did I make money on this pick? Damned straight. Do I feel bad about despoiling Gaia and oppressing the campesinos? Hell no - I did the research, I took the risk, and I helped employ somebody along the way, the way it's supposed to work. If you want in, all you have to do is pony up.

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