Callisto was out with news after the close yesterday, and after doing a little digging I am more and more convinced this stock will be a huge win for long term investors. I’m talking at least a 3 bagger from current levels, and much more for very long term investors. When I say long term, I’m referring to investors willing to hold a stock long enough to qualify for long term capital gains- more than one year.

KAL has licensed a new cancer drug from the MD Anderson Cancer Research Center known as “ Degrasyns”. While in and of itself the market might not quite get the significance, I have done a little research to understand the full implications.

The drug was co developed by  Dr. Moshe Talpaz. Dr. Talpaz is credited with being on the team that developed Gleevec, a cancer drug which was estimated to generate $1.57 billion in sales in 2005. And while I haven’t confirmed it yet, I believe Talpaz was also credited with being a co-inventor of Interferon, a drug estimated to deliver $3 billion in sales worldwide in ’06.

If this 411 doesn’t get your speculative blood boiling, I don’t know what will. When Wall Street grasps the full significance, the stock could be a double from current levels.

On a very short term basis KAL has provided a perfect entry level at $1.50. Last week’s huge volume surge was followed with a pullback.  Good fortune for those who want to own this one.

Own, own, own this stock.

I am writing this at 8 pm, so I have no idea at this time how the stock will open. If you are fortunate enough to see an open somewhere near yesterday’s close, jump in. If the stock gaps big, have a little patience and wait for a pullback. Some sellers will not understand the significance of this news.

$1.70 is the most I would pay tomorrow. If you have to pay that much, just pick up 1/2 of what you want and hope for a more favorable entry level for the other half.