Hi all,

I'm new to this and invest mainly on the fundamentals of a company. I am slowly learning some of the charting side (still a bit sceptical) and would appreciate any views on Skyepharma, a share I have a fairly large holding in, from a chartist perspective

you can`t see the writing properly. It says `possible test of 38`

That is the lower red uptrend line. The lower blue line gives a resistance of 59.5

Quite surprised at renewed interest in this share as my take on it is as follows:-

1. No takeover/merger price drops below 48p
2. Merger 48p with some plus side
3. Takeover Innovata or similar 60p
4. Takeover big pharma (only speculation) 70p

Above 50p the risk/reward gets higher as most likely outcomes are 1&2 with 3 still likely and 60p is getting nearer so less reward. If you wanted to take over a co you would try to dampen down the share price first so news will be non commital at best for a while. So only hope for share price short term is takeover battle but remember the catalyst for all this activity was a 10 year low share price and as price rises this attraction wanes.The other thing to bear in mind is that mergers/takeovers can take months behind closed doors so the share price is likely to suffer if lack of news over an extended period.
Sorry to be a killjoy and I could be wrong!!!! Be careful out there.....

Ianwas

3 is a complete non runner in my opinion, if it was to be a tie up between SKP and innovata it would have to be structured as SKP taking out Innovata or a merger (but with Innovata mgmt being installed). Reasoning for this is the change of ownership clause SKP has in some of the contracts with the pharma partners it already has