Leverage Alert: Genzyme

LEVERAGE ALERT

WEDNESDAY, JANUARY 12, 2005
NEW RECOMMENDATION!

PLACE A DAY-LIMIT ORDER TO BUY (TO OPEN) THE GENZYME APRIL 55.00 CALL
(GZQDK) AT A MAXIMUM ENTRY PRICE OF 6.50 OR LESS.

*** IF YOU ARE UNABLE TO ENTER THIS POSITION BEFORE THE CLOSE TODAY, WE
RECOMMEND THAT YOU REPEAT THIS PROCEDURE THROUGH THE NEXT TRADING DAY. DO
NOT ATTEMPT TO GET INTO THIS TRADE AFTER THE NEXT TRADING DAY’S CLOSE. ***

THIS OPTION IS CURRENTLY BID AT 6.10, OFFERED AT 6.30.

GENZ IS CURRENTLY TRADING AT 59.10.

DO NOT PLACE A GOOD-TIL-CANCELLED ORDER TO EXIT THE POSITION UNTIL WE
FOLLOW UP WITH FURTHER INSTRUCTIONS, AS WE MAY ALLOW PROFITS TO RUN IF OUR
INDICATORS SUGGEST THE POSITION HAS MORE PROFIT POTENTIAL.

NEVER PAY MORE THAN THE MAXIMUM ENTRY PRICE FOR THIS OR ANY OTHER
RECOMMENDATION. DO NOT INVEST MORE THAN 10%-20% OF YOUR AVAILABLE CASH
ALLOCATED TO THIS PROGRAM IN ANY ONE TRADE.

YOU WILL NOT RECEIVE FURTHER COMMUNICATION CONCERNING THIS TRADE, INCLUDING
CLOSEOUT INSTRUCTIONS, IF YOUR SUBSCRIPTION IS NOT ACTIVE AT THE TIME WE
ISSUE FOLLOW-UP INSTRUCTIONS.

LEVERAGE ALERT COMMENTARY
RECOMMENDED ON WEDNESDAY, JANUARY 12, 2005




GENZYME (GENZ) TRADE DRIVERS:
* According to Hoover's, GENZ's product portfolio focuses on rare genetic
disorders as well as organ transplant, osteoarthritis, and renal disease.

* Last night, the company raised its fourth-quarter earnings and revenue
expectations. GENZ now expects to earn between $1.75 and $1.80 per share
on revenue of $591 million. The Street was expecting earnings of $1.77 on
revenue of $582.3 million.

* Technically speaking, GENZ continues to be a solid performer, rallying
higher along the support of its 10-week and 20-week trendlines.

* Despite this solid fundamental and technical performance, investors
remain skeptical of the shares. GENZ's Schaeffer's put/call open interest
ratio stands at 1.36, higher than 97 percent of all readings taken in the
past year.

* Short interest also increased by more than six percent during December to
stand at nearly seven percent of the stock's total float. It would now
take almost eight days to cover this sizeable short position, increasing
the likelihood of GENZ benefiting from a short-covering rally.

* Wall Street is also dubious of the stock's future, as Zacks reports that
eight of the 16 covering analysts still rate the shares a "hold." Any
upgrades from this indecisive bunch could spur further gains for GENZ.

* This combination of technical strength and pessimistic sentiment has
earned GENZ a Schaeffer's Equity Scorecard rating of 7.5 out of 10.0,
indicating that the security could have further upside ahead of it as the
bearish sentiment unwinds in the form of added selling pressure.

REVIEW OF RECOMMENDATION: Buy the Genzyme April 55 call (GZQDK) at a
maximum entry price of 6.50. We will closely monitor this position and
contact you immediately with updated instructions should our expectations
change.

CURRENT OPEN POSITIONS: Apple Computer April 60 call (AAQDL); Delta Air
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Fund January 2005 88 call (TLTAJ); Urban Outfitters March 40 call (URQCH);
Wynn Resorts March 65 call (UWYCM); Amazon.com February 45 put (ZQNNI).
The Fannie Mae January 2005 75 put (FNMMO) was closed today.
You will not receive further communication concerning this trade, including
closeout instructions,
if your subscription is not active at the time we issue follow-up
instructions.
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