I don't think they are overpriced at all. They trade at low PEGs because they are growing so rapidly. Sure, if their pipelines slow and growth slows we have another issue but right now their businesses are white hot. They are producing cures, treatments and vaccines that are literally changing the world.
Gosh! Asking price is about $90 higher than the closing last night USA Time. Great indicators of a great opening. WOW ! Definitely buy more bio tech today again .
Sentiment: Strong Buy
The valuation on the smaller (rnr) research-no-revenue biotech stocks are very clearly and obviously in a bubble. Anyone that can't see that is oblivious. Most larger biotech stocks are overpriced but since they generate large net income and pay good divy most will survive.
I would urge all of you to read the piece from Biogen's website:
"CAMBRIDGE, Mass.--(BUSINESS WIRE)--Biogen (NASDAQ: BIIB) will present new clinical data supporting the company’s marketed and investigational therapies for neurological diseases at the 67th American Academy of Neurology (AAN) Annual Meeting in Washington D.C., April 18 – 25, 2015....."
The operative word is NEW clinical data. If you read the entire article, Biogen's presentations will occur during the dates, 4/21-4/23. And we all know the earnings report is on 4/24.
So take a long position in stocks and/or calls BEFORE 4/21.
I know I did...
The best way to plat biotec is to short the puts and the calls week in week out monthly. That consistent income stream is just too much too ignore.
ACRX, OCRX and PTX looks tobe having better 2x / 3x probability ...
MS will of course also be presented by BIIB at the AAN conference next week, as in BIIB headlines of April 7:
Biogen Data at AAN Annual Meeting Underscore Commitment to Advancing Patient Care in NeurologyBusiness Wire (Tue, Apr 7)
BIIB will present update on BIIB037 on April 22 at the American Academy of Neurology in Washington. The annual meeting is April 18-25.
Anti-LINGO-1, in the news now for MS optic neuritis, will also be presented sometime during the week.
biotech sector is going to roar today
thanks to biogen good trial drug data
Biotech was dead for 10 years and now all of a sudden everyone is knee deep in biotech shares. The hedge fund managers never used to play this sector and now all of them are long biotech. This is just one huge momentum trade. I made a profit from the recent mini crash, so no sour grapes here. Will revisit later for the next leg down. Biotechs are ticking time bombs.
It's not a safe haven, it's a great investment that carries volatility along with it. There is nothing overvalued about the big biotechs. I know that you know how to read fundamentals and for the big biotechs they are excellent. If you want to try to promote your bubble agenda get to it but it you should acknowledge that these companies are just killing it right now.