Yes, I did learn something:
I learned that investors fall in love with biotechs, the same way they fall in love with silicon-based tech stocks. IMNX is in the same catagory as NTAP or AMZN or JNPR: kinky gogo concept stocks. With a stock whose earnings are so far into the future, and so uncertain, you are gambling, not investing. Gamblers occasionally win a round.
We are currently having a partial return to the bubble mentality of 1999, as evidenced by the fact that this market upturn is being led by the companies with the weakest fundamentals, and valuations are again becoming absurd. This upturn is entirely artificial, created by the Fed with massive liqudity injections, and 1/2% rate cuts every month. When the Fed's overcorrection causes inflation, all this is going to be given back. All of it. IMNX could go higher, it could even double or triple from today's levels. Since the stock price is not connected to sales or earnings or anything at all, other than the balance of fear and greed, it's impossible to know how high it'll go. But when this bear market rally is over, we'll see whose capital is still intact. |
