They made money and got off the train, leaving it to look weak , when it is anything put. All the analyst point to up. No one wants to let it run, hence we have people continuously jumping ship, never establishing and sustaining new highs. I'm ready, you ready. Hoping for amazing conference on June 2nd. The pipeline is what really holds my interest, hope they have these amazing Drugs if I need them. Dealt with amazing pain in my lie, don't like it, hope to never have to deal with C, seen enough people go thru it, not pretty. Great advancements in our futures. Ignore all run on sentences, wrote what I felt.
Sentiment: Strong Buy
The technical are turning for the better. A good sign was when it dropped below the 50 DMA then yesterday closed above. Usually a very strong buy signal.
Not to make light of technicals, being a valuation guy myself, but its been a long time since I heard some say anything positive about CELG's chart lol. I appreciate the input though. It is good to hear when that past few months have been disappointing to say the least.
It is consolidating for the next leg up. Reminds me of when the oil sector bottomed out this year, check out XLE chart. I bet we are at new highs by July
I ran a Trail Twelve Months earnings valuation for CELG and got to $120. I think we will have that as the upside for now. My year end target has been unchanged since the year started since CELG is making its guidance at $137.
That was because of the patent case hanging in Europe. Nothing much came of that but the sentiment was negative. There are some trials going on and they expect the FDA approval for 1 this year. At the same time, the valuation is up from its low over the year. It just cannot run up.
Which direction is your run going, up or down? Yup, it made a nice run from $128 in March to $106 in May. Stuck in the mud.
If you own CELG you have a stock with a high probability of doubling in the next 5 years or less with a low probability of falling more than the general market. At $92 billion in market cap this is NOT going to be a 10 bagger, if you want one of those then pick a number of the other biotechs, but they all have a significant probability of taking a 80% haircut in a short period of time. Clinical stage means no approved drug for sale, no revenues, no profits. Pick your risk/reward.
In the biotech space, I prefer a mixed strategy, pick a few like CELG or one of the biotech index funds for capturing the general gain in the space (we are in a biotech boom time which has more years to run imo) and then some smaller positions in rocketships with binary outcomes (5 or 10 baggers or bust).
You have to ask yourself if your a trader or investor. After you decide then we can talk. Me, I invest for the long run and I believe that Celg is a long term powerhouse.