Scott, the street players have mastered and engraved this fact deep onto their heads and that is this: Anything related to developmental drugs/biotech technology, is really not worth investing in, because it lacks the criteria to satisfy the thirst of momentum players! No matter, how time can prove them wrong eventually, but these guys are not going to pay attention to a biotech company which do not show them green dollars. It has been happening for almost last 5 years now, and the change in this sentiment is not seen in near horizon. If friends recall here, right after the big ISIP news release, I have posted here that they will employ the standard "sell on the news run-up" strategy and they did! As another example, look at the NBIX ... it has gone below book value now ... it experienced the worst slide in the last 5 days.
Also, this in part, is a reflection of the peoples' reaction, towards FDA shocks ... in computer technology industries, such severe riches to rags stories do not emerge overnight. And they catch the eyes of the momentum players.
To me, it feels like (no matter how ridiculous the thought might be for a moment), all these companies should pack-up from our great old USA, go to third world countries, build nice flats and compounds for their US employees there with offices, and let them work there, with patient enrollments. With substantially less living expenses, employees will be more happy and companies will become more efficient with less bureaucracy! All needy patients here then, would order their life saving new medications, thru mail-order! Imagine how it must feel to a dieing patient here, when s/he knows that the medicine can almost cure him, but s/he can't take it, simply because the company forgot to attach one more piece of paper in its filings! ;-)
No matter how unfortunate that would be for humanity, but I expect a substantially reduced college enrollments in Pharmacology, Genetics, Medicines etc. disciplines in this country, in coming years. Most workers in this sector are having it very rough right now relatively, even in such a booming economy. One went-under biotech firm's laid-off employee offered to mow my friend's lawn for $5 ... (after hearing this, my heart cried-out, but, had to suffer the pain silently). What else! Many firms have wiped-out some investors' nest-eggs ... look at IMGN ! Oh, well, someday it may become $50 stock ... but, the street is tired of finding 1 out of 100 becoming a $50 stock. The game is inherently and intensely risky by definition!
regards to all,
-/Sonny. |
