SI
SI
discoversearch

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor.  We ask that you disable ad blocking while on Silicon Investor in the best interests of our community.  If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.
Biotech / Medical : IDPH--Positive preliminary results for pivotal trial of ID
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  
To: Roger Cranwill who wrote (1071)6/27/1997 12:11:00 AM
From: Webhead   of 1762
 
Well IMHO we've witnessed first-hand a classic market overreaction to bad news. I say overreaction because Idec's recommendations were based on analyst's projections from good-old C2B8 and NOT the RA indication. Sure a potential RA treatment was a great sweatener and looks wonderful in an annual report but it was highly speculative and would face fierce market competition from the other thousand companies developing (also speculative) treatments for RA. So, once the dust settled and people realized that the reasons they bought into Idec in the first place were still valid, fear was transformed into greed. Idec had a terriffic recovery on the day of the Phase 3 pause/halt dropping from a previous close of 25 7/8 to 21 (!) and then back up to close at 23 1/4. Now we're at 24 7/8 on pretty light volume. It seems (at least for now) that the sellers have dried up. A similar situation existed for XOMA when their collaborative venture with PFE was also stopped in phase III (for the E5 antibody). The price plummeted, people realized E5 had little to do with Xoma's future anyway, and within a week and a half Xoma's price was back up to where it was before the news "disaster".

The market may be efficient (ha!) but it sure ain't rational...

My prediction: back to >$26 by next Friday

Ed
Report TOU ViolationShare This Post
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  

HomeMailHotSubjectMarksPeopleMarksKeepersSettings
Terms Of UseContact UsCopyright/IP PolicyPrivacy PolicyAbout UsFAQAdvertise on SI
© 2025 Knight Sac Media.  Data provided by Twelve Data, Alpha Vantage, and CityFALCON News