Hello Roger, I've got two thoughts on this. The first is that on several historical price movements to the upside, both which were quite dramatic and nothing to complain about, a couple of soft days on the way up seemed to occur every few days. As we are on about our 11th or 12th day of a so far unrelenting move to the upside, I see nothing unusual here. The other is that I've sometimes wondered if someone is playing some games here. This is pure speculation but If its the case, I've been able to take advantage anyway by consistantly buying on the drops. IDEC has always come around and come around quickly at that. I have friends whom I have put on IDEC who cannot afford to continually buy on the dips. I have always instructed them simply to hold and, if by chance they can buy, go ahead. Because of where they bought, even the simple strategy of holding has done them well. The only losers on this stock will be those who sell IMHO.
Again, my best feeling for today's events are simply that the "corrections" are inevitable and if you examine past "rally" action on the charts you will see that they always contain some of these days and quite often have been shortly followed by some great movement.
I am expecting news during the course of this weekend quite consistent with past trial results. Biotech seems quite strong lately with many Biotechs looking underpriced compared to many industries in the market. Remember that the market has become a little choppy as of late. I would not be surprised at this point to see some pulling out of some of the blue-chips looking for stocks which are not at all time highs. The coming weeks are traditionally good to Biotech and the Phase III this weekend comes at the perfect time to attract some of these lookers. We can also expect to see a "significant" contribution to IDEC's earnings this quarter as entry of CE9.1 into Phase III has generated a milestone payment from SmithKline.
I have expected this correction for some days now and remain optimistic. I might add that, although the market does not seem to realize it yet, Immunocongugates that work without eliciting an immune response are the first really new approach to cancer therapy in years. There has been very little press on this, perhaps because the market is focused on protease inhibitors right now, but the truth is its a good story waiting to be told. We are on the verge of an approach to CA therapy which is surgical in its precision without the surgery. This is something the market has forgotten that it has waited for for a long time. I do not believe for a minute that Non-Hodgkins Lymphoma is the only CA to which this approach will be applicable. Basically, what we are seeing here is the turbulent action any investor in a new biotech is bound to get.
Its still going to get better than this,
BENNETT |
