I don't see CELG as cheap- it's trading at 12.8 x's book and 101 x's tangible book. And that's only using tonight's close, not the recent highs you use in your assertion.
Hey CNBC.....BA ZING! Told you this was a HOLLOW sell-off...............there is a dynamic that wall Street seems to be missing and that is as follows.....the BOOMER generation is retiring at a clip of roughly 10k PER DAY....meaning now that the PIPELINE is full and RELIABLE for as far out as the eye can see, that the BOOMER generation is going to DO FOR MARKETS, what it did for breakfast cereal, hotdogs, and hamburgers and that is.....................PROVIDE CONSTANT ACTIVITY GROWTH for the markets via ETFs, FUNDS, and a GROWING number of STOCK PICKERS espeically in light of such oppressively LOW INTERST RATES.
Check your volume and remember.....the hedgies and etf's have now taken volume OUT of the market and it is obvious when they are in or moving a position.....so continueing to IGNORE this NEW DYNAMIC to our markets is.....well, do so at your own risk.
While grossly UNDEREDUCATED on investing, the BOOMER generation still represents the overall BEST EDUCATED in our markets......and this will only increase as folks begin to take investing their hard earned money very seriously. All IMHO but again, a dynamic clearly ignored by Wall Street.
I'm a long term investor and have owned CELG for almost 6 years. Like most quality stocks, when ever I have sold positions in the past I ended up regretting it and should have bought more shares on a pull However, everyone's situation is different and you need to first evaluate what's your goals are. Short term? Long term? Trader?
Any long term investor will hold on this news. CELG is likely to trade down to its 10 week line, and should find support there. I suspect it may trade down to the $78-$80 area in the coming weeks.
If you are a trader; it may be wise to sell, and seek a "fast trade?"