Yesterdays intraday low was a nice opportunity to nibble some for a long term position. You have to remember I own long term and I trade. That means most of my technical post are meaningless to a buy and hold person. It is helpful if your looking to add some stock or start a new position.
The 1 year chart has posted a bearish MACD crossover signaling a consolidation period has begun. The 5 year chart has peaked and begun to decline. The upward momentum is gone and now a downward bias has begun. Personally, I am hoping for a pullback to $120 ish to start buying back my trading position. Fist level to watch is still $128.50.
RCPT price is sinking close to $227 which puts it 2% below CELG commitment and despite tender offer underway. This suggest there is "smoke" around the acquisition - perhaps a fire... Problem?
Same as always. I plan to buy should be pull back to the low $120 range. At or below $124 would be a good place to start putting back on my trading position.
CELG could be in the mid to low 20's soon with the drops it is having. I plan to just watch til it seems to settle at some point before considering getting back in since it is dropping so fast. How do you feel about it now?
Since I really love CELG, I do need to point out the one thing I don't like. CELG has about 6B in debt and plans to add 5B in debt for RCPT deal and another 3B for general cooperate purposes. That puts their new debt at 14B. Their trailing 12 months EBITDA was around 3.5B. That would now put them at a Debt/EBITDA of 4. That is actually very high. Doesn't change my mind about CELG, but certainly something that I will continue to watch.
I agree… we are back to 140 easy by the end of the week.. then onward from there. People waiting for a return to the low/mid 120's to buy will be waiting a very long time