Let me be the first, to congratulate all you longs that were around when I was. It looks like you guys might have finnally hit. Unfortunately, as you all know I dropped my stock, and said I would pick them back up on the first of the year, but I think I was about 3 weeks off. If this stock hits the high 8's again next week, from profit taking, which I think it will, I will load up then, if not, have a fun ride to the top.
<<. If this stock hits the high 8's again next week, from profit taking, which I think it will, I will load up then,>>
Look at the charts. This explosive move $9 1/4 to $11 7/16 on Friday was an event two and a half months in the making. The $10 resistance level was like a brick wall that the stock couldn't break through. Now that it finally has, that will be a strong support level. Purely from a technical perspective, this stock won't be in the 8's again for a long time. Even a 50% retracement of the recent climb puts us around the $10 support level. From a fundamental perspective, it will NEVER be in the 8's again UNLESS some catostrophic news event occurs (a Thalomid baby being born, the FDA requiring the removal of the product from pharmacies, etc.). I believe this move on very heavy volume was fueled by the cumulative knowledge of the last few months (news releases from the company and several different research centers), as well as a possible "awakening" and "enlightenment" of the shorts. Even if half of Friday's volume was from shorts covering, we would still need four to five days like that for all of the shorts to cover. By then, this stock would been in the teens without a problem.
There is still more news to come - Monday and indeed the following week will be very interesting! In a few days, I will have been invested in this company for two years. It's been a long wait, but I've got a profitable position now. That does not make me any more eager to sell here at $11 or $12 than it did back in August. My aspirations, as well as many other longs, are much higher than that. I just can't see profit-taking in the $8-11 range as you suggest. This kind of stock had too much risk associated with it in 1996 to mid 1998 for investors like myself to be satisfied with such a small gain. All of the Celgene investors I personally know are in this thing for much, much bigger gains than selling at this price would provide. After the washout to the $4 level in September, there are many more strong hands in the stock now than ever before. Don't underestimate the resolve of the current long investors in this company. If there aren't many willing sellers between here and $18 a share, this stock could soar to that level in one day on the right news and an institution or two placing big buy orders.... not to mention the shorts getting steamrolled, willing to buy at any level to save their skin.
CelgeneInvestor is right, Those of us that have been in this awhile are not here for a quick point or two. Don't sell too early. If we dig in here and don't give away our stock at these ridiculously undervalued levels (even at $18, this stock is undervalued), the shorts will be squeezed beyond belief. It is even more critical now that those who are not on margin move their stock to a cash account and tell your broker not to let shorts borrow. Really - take the time to do this - if everyone does, it will be more than worth your efforts. We are headed much,much higher - at times like this it is GREAT to have large short interest.