Possible Genzyme Buyout Could Spike Small Cap Bio (NASDAQ:GENZ) (NASDAQ:PARD) (NASDAQ:THLD) (NASDAQ:OXGN) (AMEX:ULU)

By Gareth Soloway on July 26th, 2010 12:26pm Eastern Time

Rumors are swirling around a possible buyout of Genzyme Corporation (NASDAQ:GENZ) by Sanofi-Aventis SA (NYSE:SNY).  Since Friday, Genzyme has jumped from $54.00 per share to a high today of $67.69.  As buyout frenzy hits Wall Street and specifically biotechs, small cap dead bottom biotechs may get some play.

One of these dead bottom plays are Poniard Pharmaceuticals, Inc. (NASDAQ:PARD), which is trading near its 52 week lows and below cash.  In addition it was voted best of the ASCO conference.  Other interesting micro cap plays trading near their lows are Threshold Pharmaceuticals, Inc. (NASDAQ:THLD), OXiGENE, Inc. (NASDAQ:OXGN) and Uluru Inc. (AMEX:ULU).  Keep a close eye on these in the coming days. Some are upticking today already.

With a buyout of Genzyme looming, it may also signal that many large companies sitting on massive amounts of cash may be looking to spend it.  This may mean other stocks in other sectors, trading on their dead bottoms could bounce.  Stay tuned to this interesting story on Genzyme.  I am on small cap bio alert at this point, watching for anything of interest.

Gareth Soloway
Chief Market Strategist
www.InTheMoneyStocks.com