MBI went up because Yorkton Brokers are flogging the stock ahead of the full public release of their report.
As usual people do not know how to value biotech. Now that people are focused on biotech issues like MBI, Hemosol (HML) etc. any brokerage report will cause movement in a stock.
For example an analyst reiterated a sell for QTL yesterday from a month ago (before the major move in QTL)and QTL sold off quite strongly and continued today. When Visudyne is given full approval by the FDA for the USA, QTL will have earnings approaching 500,000 US from that drug alone. That will demand a stock price of about 600 a share with a two digit earnings multiple. You do the math.
But since nobody understands that except a few people, the majority of little investors are selling in fear or to jump into the latest stock. Today MBI was that stock. I hope we hold and do not turn in to a Genetronics (T.GEB) which ran to 15 share and pulled back very hard to 9.
Day traders are ruling the market now, and those guys are driven by fear and greed more than common sense. MBI's move today is good for the stock to set a nice 52 week high. But the reasons for buying it are not necessarily the wisest.
When it pulls back again you can enter (or re-enter in my case) and feel confident it can make it back up to its high and maybe higher. This market is pretty "mental" maybe even a little schizophrenic with the Dow down over 13% and the Nasdaq (tech stocks) up about 13%. This schism won't last forever and we will see a see-saw change with money flowing from tech into utilities, gasoline/oil companies and manufacturing.
My personal view is to stay focused, don't put too much into anyone stock and have a diversified portfolio of 5-10 stocks. I have one or two stocks in one of the following sectors (with my picks in brackets):
Wireless
(Nokia (NOK on NYSE), Sierra Wireless (T.SW), QCOM, Research in Motion (t.RIM or RIMM on Nasdq)
Financial or Gas/Oil
(TD Bank (T.TD) PetroCanada (T.PCA))
Business to Business E-commerce
(BCE Emergis (T. IFM),Microforum (T.MCF, CGI (T.GIB.A)
Biotechnology
(Human Genome Science (HGSI on Nasdq), Biovail (T.BVF), Hemosol (T.HML), T.MBI, Biomira (T.BRA))
Tech or Manufacturing
(ATI (T.ATY or ATYT on Nasdq), Bombardier BBD.B, Apple Computer (AAPL on Nasdq)
Special mention for Quebecor (T.QBR.A) which may become a Canadian internet portal like Lycos or Yahoo. Also MacKenzie Financial (T.MAK) as a possible takeover candidate by a major bank...
Sorry to run on but I felt like rambling and mentioning where I think things are going.
HOpe everyone had a good weekend.
Wish I bought some MBI when you told me to Yesterday LARRY G.
<GRIN> oh well.
Graham
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