Long Position on UTHR @ $55.00 on 8/8/2012 (Rumor)

United Therapeutics Corporation (UTHR) engages in the development and commercialization of therapeutic products for patients with chronic and life-threatening diseases in the United States and internationally. It offers Remodulin, Tyvaso, and Adcirca for the treatment of pulmonary arterial hypertension (PAH). The company also develops Oral Treprostinil (UT-15C), a new drug application filed with the United States Food and Drug Administration for the treatment of PAH. Its development products under Phase III clinical trials include Oral Treprostinil (UT-15C) Combination Therapy for PAH; Ch14.18 monoclonal antibody (MAb) targeting Neuroblastoma; and Remodulin for the treatment of PAH in the United States, the United Kingdom, France, Germany, Italy, and Japan. The company's development products under Phase I clinical trials comprise Beraprost-MR for PAH in North America, Europe, Mexico, South America, Egypt, India, South Africa, and Australia; 8H9 MAb targeting Metastatic brain cancer; and IW001 for the treatment of Idiopathic pulmonary fibrosis and primary graft dysfunction. Its pre-clinical stage products consist of Glycobiology Antiviral Agents for viral infectious diseases; PLacental eXpanded cells targeting PAH; and pulmonary tissue replacement and remodeling products for the treatment of end-stage lung disease. The company serves pharmaceutical wholesalers through specialty pharmaceutical distributors and other distributors. One of the rumors states that this stock will be named by the leading stock advisory service as one of its "top picks." This service is widely followed by mutual funds and institutional money managers. These investors have portfolios that mimic recommendations of this service. Their naming of the stock should lead to additional demand for the shares. Shares are heading higher in a bullish "cup & handle" and are expected to move higher in this formation. The stock has a 52-week trading range of $36.55 - $56.38. Shares last traded at $55.00. Should you decide to take a position, wait for the morning volatility to wear off and use a stop-loss of $52.25 (five percentage points below your purchase price.) Be sure to use a limit order and not a market order. Keep in mind that our price target is $60.50.

Position closed on 9/10/2012 at price of $55.00 with a 0.00% gain in 33 days.

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