Just another trade of Mike's:
I posted on the MAGN thread, but as long
as things are pretty dead around here, what
the heck.
trade; bot 1000 MAGN at 5 11/16
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...I suppose that
contradicts the long term hold idea, oh well, I'm
an idiot.
One word of caution, apparently if rates go up
biotechs in general go down--at least that is
what the previous manager of FBIOX said in the
August annual report. |
