Hi Armin - since CEGE has only 12% of ABGX, it is unlikely they are in lock steps. ABGX can behave quite differently for both fundamental and/or technical reasons. For instance, within the biotech sector, only genomic shops like CRA and ABGX enjoy a better rebounce. Also, CEGE has ~24MM float versus ~14MM for ABGX. Short/Long squeezes can make each exhibits divergence. Off hand, I also think CEGE is running into some technical resistance, but once we cleared 25ish, the real battle will be at 28ish resistance. Clear that, it will be the time for the bear to sweat a little :)
Short term chao :) aside, in the long run, CEGE has 12% of ABGX in her treasury, it will be considered as part of her underlying values. However, as I ve stated before, cash and equivalence are likely to be of lesser importance to her technologies, patents and pipeline potentials.
Just my 2c |
