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Biotech / Medical : VD's Model Portfolio & Discussion Thread -- Ignore unavailable to you. Want to Upgrade?

To: scaram(o)uche who wrote (8675)	3/17/2001 2:03:33 PM
From: Spekulatius	Read Replies (1) \| Respond to of 9719

We are certainly looking at panic selling at this point. Biotech stocks are clobbered left and right.The most ridiculous example (and my biggest looser) is INCY. I am a system trader and set predetermined limit orders. I bought the stocks this week that I wanted to own for a long time NBIX, VRTX, ABGX and bought some back some PRCS. All the limit orders that I thought were ourtrageously low were hit this week. And most of the stocks I bought are now even lower than I bought them. I seriously have to rethink my idea that biotech investing should be LT. If biotechs get clobbered every 2-3 years it may be just better to ride the waves of euphoria or dispair.

To: scaram(o)uche who wrote (8675)	3/17/2001 4:16:44 PM
From: Mark Bong	Read Replies (1) \| Respond to of 9719

Rick, pay attention to options expiration. quote.cboe.com If you look at a number of biotechs that were hit this week, you will see that options traders absolutely cleaned up. Clearly, trading firms made a major effort to push equity price levels down to enhance put value while taking the calls that they sold out of the money. Taking a quick look at the larger cap biotechs, options look bullish beginning in May, but April could still see some valuation trouble. IMHO. This may coincide with tax related selling. Vector & rkrw, thanks for the comment on INCY/MLNM all of which make a lot of sense.