The Trading Floor

[mick]

part #11,,, shortages 04/20/04
Stock #3: Follow the Profits

I don't know about you, but you could not tell my voting precinct from a fire drill at a geriatric community -- the over-60 crowd is the KEY to the next election -- and they are the fastest growing segment of our population over the next 10 years according to the latest census.

Despite the hefty profits we've already made from the generic drug sector in ChangeWave Investing (51% in Teva Pharmaceutical, 118% in Eon Labs and 51% in Lannett Co.), healthcare is still only in the beginning stages of a massive transformation that can make you filthy rich. IF you invest in the right companies today -- and know which ones to avoid like the Flu.

(Bottom Line: The gap between winners and losers in this industry -- quite frankly, in this entire market -- will shock you. To be successful, you must tap into the world's most sophisticated investment intelligence network so you can be sure you're buying the right stocks and selling the wrong ones. Don't waste any more time or miss any more big profit calls. Click here now to join our ChangeWave team and put the power of our 4,200-member Alliance in your investing corner.)

I already told you a little about the monstrous changes now happening in drug manufacturing. But the shift to generics is SO UNBELIEVABLY TRANSFORMATIONAL -- and the profits to be made are so astounding -- that I want to reveal another one of our favorite generic picks here.

There are 52 major drugs coming off patent in the next five years. Fifteen of those are blockbuster drugs, with more than a billion dollars in sales. That means big money in the generic manufacturers' pockets...and YOURS, if you act now.

The companies that are going to do the best are those with first-mover advantage. The first manufacturer with a generic for a particular drug coming off patent gets a six-month exclusive window for selling the drug, giving it a huge edge over competitors and a windfall in profits.

Lannett Co (LCI) is one of the "arms dealers" in the generic supply chain that's benefiting tremendously from this historic shift in buying behavior and end-user demand.

The company got the marketing rights for a top heart drug coming off patent (giving them the widely coveted "first mover" advantage), AND signed an exclusive deal to corner all the raw material for another big drug they cannot disclose for competitive reasons.

In essence, LCI is now a generics company that owns something even more valuable than a patent -- the ingredients of a drug! Buy LCI on a dip below $18.

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