Actually, I've been doing some nibbling at these levels. Been adding some KOSP, ITMN, TELK, ALKS. Dumped my INKP this morning after reading rkrw's description (VD thread) of his doctor's view of their new product.
The last few days have certainly had a better tone to them in the biotech market.
It's useful to think about our linkage to the rest of the NASD. This has a couple of components. First, the same people and institutions own both, and so unless they change the relative proportion allocated to biotech, if the rest of their stocks go down, they will sell some biotech to rebalance or meet margin calls. Second, people have been thoroughly burnt by the "story" dot.com stocks, and so they naturally shy away from anything else that they perceive as maybe more story than substance. Biotech, with current big losses and income many years in the future is an obvious (but ultimately flawed) analogy.
Posting on biotech threads on SI has dried up substantially. Historically, that has been a very good time to buy.
Peter |
