Monday, November 13, 2006
Sector Spotlight: Biotech
So far this morning, the market is ripping higher-- rewarding those who believe in her. As for the sellers, their stomachs are being roasted in hell (props to Baghdad Bob for that one).
The sector that has my attention is Biotech. Almost everyday, one of these little biotech's are getting bought out, at absurd premiums, or they are releasing good drug data-- sending their stocks through the roof. One thing is evident: The market has no fucking idea how to value the sector. Albeit, buying a small biotech, prior to an FDA meeting, can lead to rapid cutting off of the head (AVNR). However, I always felt that risk is the thread that holds the market together. Without it, there would be no 25% up days, like ISIS.
Bottom line: Building a position in small Biotech names is worth a shot, only if its done in moderation.
NOTE: Everything else is on fire, except MVIS. Unfortunately, MVIS decided to price a secondary @ $2.39 or 15% below market. Nonetheless, it is necessary that the company improve their balance sheet, in order to get the big orders. It sucks to be long today. However, I have the utmost confidence that once they ink their first Picop deal, I will be more than happy for sticking with them.
NOTE II: Please take the new "Fly Survey," Recession in 2007?
The following Biotech stocks have mojo:
ISIS +26%
GENE +5.2%
XOMA +4%
COLY +3.6%
ALNY +3.6%
CEGE +3.3%
ZGEN +3.1%
The sector that has my attention is Biotech. Almost everyday, one of these little biotech's are getting bought out, at absurd premiums, or they are releasing good drug data-- sending their stocks through the roof. One thing is evident: The market has no fucking idea how to value the sector. Albeit, buying a small biotech, prior to an FDA meeting, can lead to rapid cutting off of the head (AVNR). However, I always felt that risk is the thread that holds the market together. Without it, there would be no 25% up days, like ISIS.
Bottom line: Building a position in small Biotech names is worth a shot, only if its done in moderation.
NOTE: Everything else is on fire, except MVIS. Unfortunately, MVIS decided to price a secondary @ $2.39 or 15% below market. Nonetheless, it is necessary that the company improve their balance sheet, in order to get the big orders. It sucks to be long today. However, I have the utmost confidence that once they ink their first Picop deal, I will be more than happy for sticking with them.
NOTE II: Please take the new "Fly Survey," Recession in 2007?
The following Biotech stocks have mojo:
ISIS +26%
GENE +5.2%
XOMA +4%
COLY +3.6%
ALNY +3.6%
CEGE +3.3%
ZGEN +3.1%
