After picking up 1000 shares today, I scanned
the messages...and found the one to which this
is now linked the best one to which to respond,
what a terrible chart, my sympathies, I must be
crazy, so I ask: Can anyone tell me why?
I'll try to answer my own question.
I have had MAGN in a list of about twenty stocks I
have followed for a long time--I've waited for
it to approach $5, where I hope for some support.
Fidelity Select Biotech has a new manager, I hope
he doesn't dump the shares that James Harmon held.
I guess I will know when I get my new annual report
--which last year came to me in May I think. When
you look at the list of stocks these fund managers
hold, it is way too long--and with the diversity
of a fund like FBIOX, if I were the manager I would
not take the loss.
So why did I buy MAGN, well, I'd buy a biotech fund but
since they are over-diversified, that pretty much means
you're counting on sector rotation. Guessing that the
funds will not take the loss in MAGN, it is as good a
pick as anything else in the biotech universe, risky but
out of favor so possibly cheap.
I am basically assembling my own biotech fund, so
far I've got Viragen, VRGN and my first "third" of
Magainin.
Definately a long term hold--and yes, I do expect
that a couple of the choices in my "fund", will go
to zero. With any luck MAGN will be one of my picks
that puts me ahead. We shall see.
I do think a stop loss around 4 is a good idea, so
I'll be watching the charts... |
