Don't forget about the upcoming Zika virus scare. First case in the US just reported. Remember the ebola scare? This market is a horror show.
The congressional hear on drug prices. All the weak hands will sell ahead of the hearing. Biotech will bottom after the hearing. Its just like the sell off we had before the democratic debate back in the fall. That was one of the best trading gains i had last year buying biotech right ahead of the debate.
I do my own work and form my own opinions. I just read the research reports to see if they are pointing out anything i may have over looked. If i mess up, i have no one to blame but myself.
You point out another valid reason why analysts are not
worth relying upon for investment buys n sells.....
IMO some analysts are good and some are weak, I can't say
I value one analyst house more than another over time.
I much prefer reading buy side investor's opinions than
brokerage analysts reports
Did like reading Peter Drake, initially of Kidder Peabody and
then at Vector Research, back many years ago when biotech
VC was a happenin' thing.....mid/late 1980s.
I have been with BofA for 20 years. I value their analysts opinions, but i would never invest by them. They tend to fall for the typical market sentiment just like everyone else. I really enjoy when they release a report about how much they love a company like CELG then slash its price target from $150 to $125 for no good reason. Its like, OK it was worth $150 to you 2 months ago, but now its only worth $125 and you have no reason other then, "because the stock went down?".
I doubt those trading CELG in the past 30 days really focus in on CELG earnings
estimates.....! And those who are flipping this stock probably don't even care...!
Chicken Little can't fight the basic backbone future growth prospects for Celgene
much longer than a few months........
I would say CELG is in the top 10 biotech names for long term investors.
This is the point I was attempting to establish with jdjunk..........individual analyst
estimates can vary widely and often times should not be taken as the
absolute accurate opinion on what a company will produce....... but as I have noted
through the years, should be taken as one person's opinion of future events...!
If I have to forecast a forward outlook, I try whenever possible to utilize consensus
analyst opinions rather than focus in on one person's idea......
BofA is just one person providing his best estimate. I would be hesitant to reply
too heavily on one analyst's assessment of the future on Celgene......