Patrick,
You've definitely got interesting thoughts - few which I disagree with.
A note on the market (please note that Intel beat estimates by $0.08), many of the biotech stocks and story stocks (ie. ANCR, AMTX) have taken a beating because the only thing left to support a stock in a panic sell off or short-term correction is its intrinsic value...its fundamentals and earnings. As a result, stocks such as NMPS sell off with no foreseeable bottom in sight as investors have no idea what the fair value of a stock is. As months pass, I have noticed that biotech news (ie. FDA approvals) have had less and less of an effect on a stocks performance. Almost to the point where such news only cause the stock to bounce intra-day and maybe close lower.
And I have seen all biotech stocks perform almost in 3 stages each time. They rise incredibly in anticipation of new developments and approvals, the news causes a short-term to intermediate-term "peak", and finally the stocks are either ignored as most have "bought on rumor, and sold on news" or stagnant until solid earnings are produced. If you have a solid company such as NMPS I believe, earnings will prevail. Nonetheless, they must also be produced if the stock is gain any institutional support.
As for the "specialists", I cannot honestly say I have any idea of what this talk is about. I have never understood market makers and their schemes...
Last but not least, it was good to see NMPS bounce back with the rest of the market, but I can't ignore the chart which clearly shows weakness and an intermediate downtrend. A positive is that the stock did bounce off its 200 day moving average of about 7 1/2 and closed strong. But barring and news or a significant market rally, we may test the 200 DMA again.
Regards,
Nelson
P.S. And no Patrick, I've never seen a mad monk shopping in a whore house. But it's gotta a pretty interesting sight. :) |
