The only thing I did was explaining, why I am not going to buy the stock right now. I said more than once that INCY is a good buy on the long run.
But when it comes to buy in or add shares, the actual market condition does matter. I can pay the higher price today or a lower tomorrow. I prefer the second one. As an European investor I do not belong to the guys who look only on quarterly bases (as most US investors do). But there are good times to buy a share, and not so good ones.
The value of an database is not only measured by the data inside, but by the data that will be added in the next future. And here INCY will loose some very interesting data to Incyte Genomics, that is what I said. So I expect some pressure on prices when it comes to a renewal. Not that they are going to see prices falling strongly, but they might get less than they would have received without giving the databases to Incyte Genomics.
And what Wall Street want's to see actually is earnings, not any future value. I absolute agree with you that INCY is adding value, and that the acquisition of Hexagen was a good deal for INCY in the long run. Like you I believe that INCY management is doing a good job. If you interpreted my postings as criticism on management, you misinterpreted it.
But in the moment the market does not like what it is going to see, if you like it or not. We can start argue now, why everybody out there is blind and that we are the grave of the true investors. But whatever the market might think wrongly, the market is always right, and we pay the price for being wrong, even if we know the truth.
This is why I prefer to wait. And perhaps I will be able to enter at even lower levels, what makes the investment even more interesting.
Richard |
