Usually the best stocks to buy have not already tripled in value within the past six months.
But then there's Intercept Pharmaceuticals Inc. (Nasdaq: ICPT).
#symbols-c4ca4238a0b923820dcc509a6f75849b { width: 253px; font-family: Arial; font-size: 11px; color: #333333; } #symbols-c4ca4238a0b923820dcc509a6f75849b .header { float: left; font-family: Georgia; font-size: 14px; color: #456626; line-height: 14px; padding-left: 14px; font-weight: bold; } #symbols-c4ca4238a0b923820dcc509a6f75849b .date { float: right; padding-right: 32px; font-weight: bold; } #symbols-c4ca4238a0b923820dcc509a6f75849b .chart { font-family: Georgia; font-size: 12px; color: #456626; width: 253px; height: 135px; line-height: 135px; text-align: center; } #symbols-c4ca4238a0b923820dcc509a6f75849b ul { list-style: none; padding: 0; margin: 0; } #symbols-c4ca4238a0b923820dcc509a6f75849b li { padding: 0; margin: 0; } #symbols-c4ca4238a0b923820dcc509a6f75849b li:nth-child(odd) { background-color: #eeebe6; } #symbols-c4ca4238a0b923820dcc509a6f75849b .symbols-item .name { float: left; width: 100px; overflow: hidden; padding: 3px; } #symbols-c4ca4238a0b923820dcc509a6f75849b .symbols-item .price { float: left; width: 55px; overflow: hidden; padding: 3px; text-align: right; } #symbols-c4ca4238a0b923820dcc509a6f75849b .symbols-item .percent { float: left; width: 80px; overflow: hidden; padding: 3px; text-align: right; } #symbols-c4ca4238a0b923820dcc509a6f75849b .symbols-item.active { background-color: #456626; color: #ffffff; } #symbols-c4ca4238a0b923820dcc509a6f75849b .chart-container { width: 253px; height: 135px; padding: 0 0 5px 0; } #symbols-c4ca4238a0b923820dcc509a6f75849b .chart-container img { width: 253px; height: 135px; max-width: none; } .clear { clear: both; } INTERCEPT PHARM NASDAQ: ICPT Jun 13 loading chart... Price: 274.20 | Ch: -4.44 (-1.6%)This biotech has attracted a lot of attention this year because of its innovative and promising drug, obeticholic acid (OCA). In trials, OCA has proven effective in treating patients suffering from a liver disease known as nonalcoholic steatohepatitis (NASH). This chronic liver disease can cause inflammation and scarring, which may lead to cirrhosis, liver failure, and death.
In fact, it was the Jan. 9 news that a National Institutes of Health (NIH) study was stopped early because it had found that OCA satisfied its requirements in improving the condition of the 283 test patients that propelled ICPT stock up more than 280% in one day.
That the trial was able to determine the OCA's effectiveness one year sooner than expected was a great sign that Intercept Pharma had come up with a breakthrough drug. And in the world of biotech, there's nothing investors would rather hear.
On the day the news broke, Intercept Pharma jumped from $72.39 to $275.87. And it kept on going the next day, all the way to $445.83 - a 515% increase in two days. From there the stock has had a crazy ride, however, gyrating between $218 and $462.
That's because of some concern that another reason the trial was halted was because some patients showed elevated levels of cholesterol. The NIH panel wanted to stop the treatments to see if OCA was the cause.
So now we have a war between the ICPT bulls and the ICPT bears.
In addition to the cholesterol issue, the bears note the steep drop in earnings Intercept Pharma reported in its most recent quarter, its stagnant revenue growth, and, most recently, that Chief Executive Officer Mark Pruzanski sold 10,000 shares of his company's stock on June 2.
Short sellers took an interest in the stock in May, with short interest rising 34% in one month. About 5.7% of ICPT shares are sold short.
But the bulls still see Intercept Pharma as a stock to buy. And wait until you see who's been buying...
Stocks to Buy: Why Intercept Pharma (Nasdaq: ICPT) Can DoubleFirst of all, it's important to note that a significant subset of investors fall into the bull category - hedge fund managers. In the first quarter of the year - after ICPT popped 300% - hedge fund managers as a group increased their holdings in the stock 4.46%, when you'd expect a mad rush of cashing out to lock in the huge gain.
According to the hedge fund data site Whale Wisdom, 96 funds created new positions in ICPT in the first quarter, while only 14 closed out their positions.
RELATED: Another tiny biotech has a major FDA-related announcement coming in July. We've been tracking this company for seven months and estimate gains as high as 2,133%. Go here for details.
Analysts, too, are extraordinarily bullish on Intercept Pharmaceuticals. Their consensus price on Intercept Pharma is currently $558.33, with a high target of $693 - more than double the current price. Even the low target of $493 represents a 68% gain from where ICPT was trading Wednesday, at $292 a share.
What's more, four out of the six analysts who cover ICPT rate it a "strong buy," with the other two rating it a "buy."
When you see a level of consensus on a stock that pronounced, something awfully compelling must be driving it.
What the Bulls Realize about Intercept PharmaThe bulls recognize that most of the negative news on this stock is really no big deal. The CEO probably was just taking some profits following an amazing run-up in the stock price. The weak earnings of recent quarters are no way to measure the future earnings of a biotech nearing approval of a blockbuster drug, as we shall see in a moment.
And the biggest concern, the cholesterol issue and whether Intercept Pharma properly disclosed what was going on, is likely to blow over.
"We believe [the cholesterol issue] is much ado about nothing and has created a buying opportunity," Wedbush analyst Liana Moussatos wrote in a recent research note. "Intercept is pioneering a first-in-class treatment for cholestatic liver diseases and in every Phase 2 and Phase 3 trial tested, OCA has shown efficacy. That NIDDK stopped the Phase 2b NASH trial one year early due to efficacy suggests that OCA is a breakthrough treatment."
Another piece of news reinforcing a positive view on OCA came last week when the Food and Drug Administration (FDA) granted fast-track status to OCA - a designation reserved for particularly promising treatments - for a second liver disease, primary biliary cirrhosis (PBC). With PBC, the bile ducts in the liver, which aid in food digestion, are slowly destroyed.
In addition to NASH and PBC, Intercept has also begun a study of the drug for treatment of alcoholic hepatitis, another liver disease. The ability to treat more diseases will greatly expand the market for OCA, should FDA approval be received for each one.
"We project launch in late 2015 and gross peak annual sales could reach about $2.4 billion in 2023," Moussatos said in a note to clients.
In 2013, Intercept Pharma's total revenue was just $1.62 million. So let's just say OCA would have a pretty dramatic impact in ICPT's earnings - and its stock price.
That many don't see Intercept Pharma as one of the best biotech stocks to buy has created a terrific buying opportunity, but it may not be one that lasts long.
The next catalyst for ICPT, you see, arrives in mid-July - just about a month away. That's when the results of another study, a 24-week phase 2b follow-up on the NASH trial, will be announced.
"We view this as the most material catalyst for Intercept in 2014," said Moussatos. She thinks OCA will hit the market by late 2015.
Do you see Intercept Pharma as a stock to buy? Why or Why not? Voice your opinion on Twitter @moneymorning or Facebook.
Editor's Note: A seven-month investigation has uncovered another tiny biotech that could completely revolutionize the $84 billion vaccine market. It has created a Universal Vaccine that could wipe out breast cancer, prostate cancer, cervical cancer - and other diseases. Based on early projections this company's stock could go as high as 2,133%. Our full investigation is now available. Please click here to read all the details...
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Getty ImagesMoms often teach their kids some of their earliest money lessons. As a child, my mom always made me feel safe, secure and loved. But she also made it a priority to prepare me for a life of financial stability. She spent a lot of time and effort over the years to set me on the right path. Sometimes she taught by example, and other times it was necessary for me to learn the hard way. These lessons have become a part of my core set of values and impact how I strive to teach my own child as well as my work for a coupon company. Here are some of the key money lessons I learned from my mom. Make your own money: My mom believed I wouldn't truly understand the value of a dollar unless I had to earn it myself. I got my first job at 15 and continued to have a job throughout college. Yes, working for minimum wage while my friends spent lazy days by the pool was hard. But as time went on, I realized I made more responsible decisions when I earned my money. I became a savvy shopper and learned to use coupons and scoured store sales and clearance racks for the best deals. Invest: Sometimes spending less doesn't equal saving more. I remember on one of our shopping trips, I proudly showed my mom a trendy blouse I had fallen in love with and it was only $10! I was sure she couldn't object. Not so fast. After closely eyeing the cheap garment, she asked me how many times I'd be able to wear it before it fell apart or was no longer fashionable. Two times? Three times? This taught me my first lesson in investment shopping: Calculate the per wear price. It didn't seem like such a bargain after all. Sometimes it's worth paying more for high-quality, timeless pieces if I can get more uses and versatility out of them in the long-run. Make it work: As you could probably guess, my mom didn't grow up with a silver spoon in her mouth. There was no extra money to spend on items deemed frivolous, which unfortunately for her meant toys. She became very resourceful with what she had around her. She made flowers by folding old newspapers and caught insects to keep as pets to distract herself from the fact that she didn't have dolls to play with. She reimaged most items into serving more than one purpose. Once when I ran out of glue for a school project, she used some leftover cooked rice from our dinner and mashed together a sticky paste to hold together my artwork. Cash in on the perks: We were fortunate that the company my father worked for paid for annual family vacations, including first class tickets and upgraded hotel accommodations. A very nice perk indeed! However, she would book us in coach and we would stay in more moderately priced lodgings or sometimes even stay home for a staycation. There were times I whined about it, but she would respond that we would have more spending money for shopping and fun activities. She won that argument every time. Let your head rule your heart: This isn't to say my mom doesn't believe in true love or romance. But she felt having financial compatibility with your mate was just as necessary to sustain a happy marriage. It was important that she and my father were on the same page with their spending habits and financial goals. Bad spending of habits of one person in a family causes bad consequences for everyone. Stay organized: She was a firm believer of having a place for everything, and everything in its place. How would I pay my bills if I couldn't find my checkbook, or know when the bills were due if they were scattered around the house? Getting charged my first $25 late fee for a bill I forgot to pay painfully proved this point. Today, there are several mobile apps and websites that make it easy to organize finances and bills online, which I've taken full advantage of because the groundwork was laid years ago. Know when to hold them, know when to fold them: I used to cringe that her relentless bargaining skills could reduce a grown man to tears, but more times than not, she got what she felt was a fair price. She taught me to set a budget beforehand and not to be afraid to ask for a discount to get to that amount. The worse answer I could hear was "no." And if I couldn't close the deal, she taught me to just walk away. At times that was easier said than done, but she felt that agreeing to pay beyond your budget was the same as tossing money in the garbage. That mental picture has stopped me from many last-minute purchases. I'll admit I've faltered from my mom's lessons over the years. Nobody's perfect, after all. But thanks to my mom, when I get financially off-kilter, I have the tools to always get myself back on track. .
Deutsche Bundesbank, Frankfurt am Main/AP LONDON -- Gold rose Friday ahead of a series of speeches by U.S. Federal Reserve officials but was still on track for its biggest weekly fall since November following the Fed's hints of an interest rate hike in the first half of 2015. Fed officials including Richard Fisher, James Bullard and Narayana Kocherlakota are due to speak later Friday after Fed Chair Janet Yellen surprised markets mid-week by suggesting the possibility of raising interest rates early next year. Spot gold was up 0.6 percent to $1,336.40 an ounce by 1508 GMT (11:08 a.m. Eastern time), after falling to $1,320.24 on Thursday, its weakest since end-February. U.S. gold futures gained 0.5 percent to $1,336.80 an ounce. On Monday bullion briefly touched a six-month high of $1,391.76 on tensions in Ukraine and concerns about growth in China before the focus shifted towards the U.S. monetary stance. It was on course for a 3.1 percent weekly fall. "After the Fed policy meeting we saw gold fall and touch support around $1,320," MKS SA head of trading Afshin Nabavi said. "But with tensions again escalating between Russia and the West, the market has become more jumpy because it is not only the macroeconomics driving prices but also the political situation, at least in the short term." European and U.S. shares edged higher, while the dollar hovered near a three-week high against a basket of major currencies and 10-year U.S. Treasury yields rose above 2.7 percent. "The main longer-term factors remain expectations for higher yields, higher interest rates and a stronger dollar, which are negative for the metal," ABN Amro commodity analyst Georgette Boele said. Low interest rates, which cut the opportunity cost of holding non-yielding bullion above other assets, had been a key factor driving bullion higher in recent years. An escalation of U.S. sanctions against Russia over the crisis in Crimea kept investors cautious, giving support to gold, usually seen as an insurance against risk, analysts said. U.S. President Barack Obama raised the stakes in the East-West confrontation on Thursday by targeting some of Russian President Vladimir Putin's closest long-time political and business allies with personal sanctions. Physical Buying The physical sector noted light buying from jewelers, but demand from main consumer China remained slow because of a weak yuan. Premiums for gold bars in Hong Kong were unchanged from last week at $1 an ounce to the spot London prices. China's yuan fell to a 13-month low on Friday and was set to post its biggest weekly fall after the central bank lowered the midpoint of its permitted trading range, which is seen as a signal of official comfort with the currency's recent losses. Weakening differentials between 99.99 percent purity gold on the Shanghai Gold Exchange and cash gold discouraged imports. "Shanghai gold exchange is still at discounts to spot gold, and the market wants to know if the yuan will continue to depreciate," a physical dealer in Hong Kong said. Gold jewellery exports from India edged up 1 percent in February to $718.36 million from a year earlier, an industry body statement said on Thursday. In other precious metals, palladium rose 4 percent to $795.00 an ounce, its highest since August 2011, boosted by the launch of two exchange-traded funds in South Africa and increasing sanctions by Western countries on main producer Russia. Silver rose 0.6 percent to $20.39 an ounce and platinum gained 0.5 percent at $1,435.50 an ounce. -. 
Elaine Thompson/APMachinists union members and supporters hold their right hands over their hearts as they recite the Pledge of Allegiance ahead of a rally Thursday in Seattle. SEATTLE -- Boeing machinists will decide Friday whether to accept a contract that would concede some pension and health care benefits to secure assembly of the company's new 777X airplane in Washington state. The offer has fractured the union and drawn unusual pleas from politicians who say the deal is necessary to support the Puget Sound region's economic future. Boeing (BA) has been exploring the prospect of building the 777X elsewhere, a move that could trigger a steady exodus of aerospace jobs from a region where Boeing was founded. Local union officials, meanwhile, are urging their 30,000 members to oppose the deal, arguing that the proposal surrenders too much at a time of company profitability. They have opposed taking a vote at all but were overruled by national leaders in the machinists union. Voting will to take place from 5 a.m. to 6 p.m. Friday. Results are expected to be announced later in the night. Washington state has always been the most natural place for Chicago-based Boeing to build the 777X, since most of the company's production is still done in the Puget Sound area. Boeing has offered to keep the 777X in the region but sought two big deals: An extension of tax breaks all the way to 2040 and a new contract with the Machinists union that would transition workers away from traditional pensions. In November, state lawmakers swiftly approved the tax benefits -- valued at some $9 billion -- but the Machinists rejected a proposed contract shortly afterward. After the initial contract rejection, Boeing immediately began soliciting bids from other states. The company said it received submissions for 54 locations in 22 states. Boeing has improved its offer since the last vote by machinists. An initial plan to slow the rate that workers move up the pay scale was tossed while the company also offered an additional $5,000 signing bonus and improved dental coverage. Opponents of the contract oppose the idea of freezing the pension and moving workers to a defined-contribution savings plan. They also decry increased health care expenses and slower wage growth. However, some machinists would likely see their base salaries rise above $100,000 if the deal passes. Boeing Co. began offering the 777X in May, and company officials have said they need to move swiftly to decide where the plane will be built. Production of Boeing's 777X would likely bring thousands of well-paying jobs to whatever region wins the work. The plane is a new iteration of its strong-selling 777, and the company recently received orders for 225 new 777X planes from three airlines at the Dubai Airshow. Boeing has said the 777X is expected to carry as many as 400 passengers and be more fuel efficient than the current 777. 
Touchstone/Getty ImagesBen Affleck in a scene from the 1998 film "Armageddon." Only a handful of actors have been given the privilege of playing Batman. Last week, Ben Affleck joined a list that includes the likes of Adam West, Christian Bale and Kevin Conroy, who has voiced the character in animated features since 1992. He'll join Henry Cavill, who plays Superman, in an epic that pits the two iconic superheroes against each other. Time Warner (TWX) plans to release the film in July 2015. Many fans were outraged by the choice. "Christian Bale IS 'THE' BATMAN and I refuse to watch this movie even after it comes out on video," wrote one commenter to an article I published at Fool.com last week. Another organized a petition asking Warner to reconsider its choice. More than 85,000 have signed as of this writing. Tale of the Tape Are fans overreacting, or is Warner taking a huge chance by asking Affleck to play one of its most valuable superhero brands? I'd argue the former after looking at the data. Pound for pound, Affleck's credentials are about as good as Bale's: 
Goodluz/Shutterstock Americans give multiple reasons for shopping online from work, such as keeping purchases secret, not having time outside of work to shop and a faster Internet connection. But it comes with risks, too. That's the conclusion of a recent survey by legal information website FindLaw.com, where 35 percent of Americans said the shopped online at work. Stephanie Rahlfs of FindLaw in a statement warned that shopping online while at work could give employers grounds for discipline or termination. Most workplaces have policies restricting employees' use of the company Internet for personal uses. In addition, even if such policies are not explicitly stated, it's a safe bet that most employers would frown on employees cyber-shopping on company time. Just how much time is online shopping sucking out of the work day? According to Ebates, 16 percent of Americans said they spend an hour or two each week shopping online at work, while 14 percent spend three to four hours a week, and 4 percent said they spend a decent chunk of their work time, five to seven hours per week, online shopping from their office. Mashable offers this advice: "How to Shop Discreetly at Work." Some Leniency According to Cleveland.com, some employers are lenient when it comes to their employees' online shopping, as long as they're not spending an exorbitant amount of time. "One of the reasons most employers are lenient regarding shopping at work is that senior management is more likely than their rank-and-file employees to do the shopping," Ryan Hunt, senior career adviser at CareerBuilder in Chicago, said in an email to Cleveland.com. Robert Half Technology, an international information technology staffing company, recently asked employers about their company policy regarding online shopping. Here's what they said: 27 percent of employers allow their employees unrestricted online shopping access. 42 percent allow some access but monitor the online shopping for excessive use. 30 percent of employers block access to online shopping sites. "It is part of a growing trend allowing more flexibility, to increase not only employee satisfaction, but ultimately employee productivity while at work," Eric Younkin, Cleveland branch manager for Robert Half Technology, told Cleveland.com. 
Pinterest/AP 
Carlos Osorio/APGM's latest recall includes some newer models, including the 2013-14 Cadillac CTS. DETROIT -- The ignition switch recalls now engulfing General Motors (GM) and Chrysler are raising new questions about the safety of the parts across the American auto industry. GM's safety crisis deepened dramatically Monday when the automaker added 8.2 million vehicles in North America to its ballooning list of cars recalled over faulty ignition switches. GM has now issued five recalls for 17.1 million cars with defective switches, spanning every model year since 1997. On the same day, Chrysler recalled almost 700,000 vehicles in North America because its ignition switches -- like GM's -- can slip from the "run" to the "accessory" position while driving. The Chrysler action expands an earlier recall of 2010 Chrysler Town and Country and Dodge Grand Caravan minivans and Dodge Journey crossovers. Models from 2007 to 2009 are now included. GM's debacle caused other manufacturers to investigate their own switches and other potential defects. A recent spate of air bag recalls is probably tied to those internal investigations, said Karl Brauer, a senior industry analyst with Kelley Blue Book. The government is also reviewing the switches. Brauer said he doesn't think the ignition switch recalls will expand across the industry. Manufacturers all have their own switch designs and use different suppliers. But the possibility is there, and buyers should be aware of the potential for cars to slip into the wrong mode. If a car comes out of the "run" position, the power steering and brakes can stop working, which can cause drivers to lose control. The air bags also won't function. GM has urged drivers to remove excess items from their key chains that could weigh down the keys. "I think the ignition switch thing is fairly specific to GM, but it will be interesting to see. Were other companies letting their standards fall?" Brauer said. GM's latest recalls involve mainly older midsize cars and bring its total recalls in North America to 29 million this year, surpassing the 22 million recalled by all automakers last year. The new GM recalls cover seven vehicles, including the Chevrolet Malibu from 1997 to 2005, the Pontiac Grand Prix from 2004 to 2008, and the 2003-2014 Cadillac CTS. The company is aware of three deaths, eight injuries and seven crashes involving the vehicles, although it says there's no clear evidence that faulty switches caused the accidents. Air bags didn't deploy in the three fatal accidents, which is a sign that the ignition was out of position. But air bags may not deploy for other reasons as well. A GM spokesman couldn't say Monday if more recalls are imminent. But this may be the end of the recalls associated with a 60-day review of all of the company's ignition switches. At the company's annual meeting earlier in June, CEO Mary Barra said she hoped most recalls related to that review would be completed by the end of the month. Huge Number of Recalls Brauer said the number of recalls -- while huge -- may be a good thing for the company in the long run. "I think there's a new standard for what GM considers a potential safety defect, and Mary Barra has no tolerance or patience for potential safety defects that are unresolved," he said. In a statement Monday, Barra said the company "will act appropriately and without hesitation" if any new issues come to light. Lance Cooper, a Marietta, Georgia, attorney who is suing GM, said he expects even more recalls. A company funded investigation of the ignition switch problems by former U.S. Attorney Anton Valukas found that GM had a dysfunctional corporate culture in which people failed to take responsibility to fix the problems, Cooper said. "Cars got made that were defective. The buck kept getting passed, and this is what happened as a result," Cooper said. The announcement of more recalls extends a crisis for GM that began in February with small-car ignition switch problems. GM recalled 2.6 million older small cars worldwide because of the switches. Drawing Government Scrutiny The problem has drawn the attention of the National Highway Traffic Safety Administration, the government's road safety agency. On June 18, the agency opened two investigations into ignition switches in Chrysler minivans and SUVs, and acknowledged that it's looking at the whole industry. The agency is looking into how long air bags remain active after the switches are moved out of the run position. In many cases, the answer is less than a second. GM's recalls on Monday bring this year's total so far to more than 40 million for the U.S. industry, far surpassing the old full-year record of 30.8 million from 2004. The latest recalls came the same day the company's compensation consultant, Kenneth Feinberg, announced plans to pay victims of crashes caused by the defective small-car switches. Attorneys and lawmakers say about 100 people have died and hundreds were injured in crashes, although Feinberg said he didn't have a total. Feinberg said the company has placed no limit on how much he can spend in total to compensate victims. But victims of the new set of recalls announced Monday can't file claims to the fund, which deals only with the small cars. In the original recall, the ignition switches didn't meet GM's specifications but were used anyway, and they slipped too easily out of the "run" position. The vehicles recalled Monday have switches that do conform to GM's specifications. In these cases, the keys can move the ignition out of position because of jarring, bumps from the driver's knee or the weight of a heavy key chain, GM says. The cars recalled Monday will get replacement keys. The small cars recalled in February are getting new ignitions. The Detroit company said it plans to take a $1.2 billion charge in the second quarter for recall-related expenses. Added to a $1.3 billion charge in the first quarter, that brings total recall expenses for the year to $2.5 billion. GM also announced four other recalls Monday covering more than 200,000 additional vehicles. Most are to fix an electrical short in the driver's door that could disable the power locks and windows and even cause overheating.