I've thought about this question for several days and the answer really depends. What is your return window (how long are willing to wait before getting a specific profit)? What's your tolerance for risk? What's your tolerance for wild swings in the stock price?
The products that Medi has in the pipeline are both profitable, ie. Respigam, promising, ie. Sygnagsis, and show incredible potential, ie. anti-viral vaccines. So MEDI has the potential to be a blockbuster pharmaceutical company. They are also well connected in the industry. On the other hand, they aren't yet diversified in their product mix. The company stock has been at 50 before, several years ago. And has experienced significant swings.
Currently, they had a profitable quarter. And they do have an FDA approved drug. That puts them way ahead of most of the biotech pack. The analysts estimates have them showing a loss over the next two quarters (2Q=-.58, 3Q=-.52) before ending with a big bang in the fourth quarter (4Q=1.08). These estimates were made before 1st qtr.'s earnings report came out, almost doubling estimates (actual=$.44 vs. estimate=$.23). So the earnings estimates will have to be adjusted.
So in answer to your question--Is is still a good buy? In My Opinion, over the long run, 3-5 years, I believe there is a good chance of showing very good returns. |
