You're the reason I usually stay off these boards. Get a life. I only came on here because I didn't see the news right away and didn't know why there was so much selling. How the hell would I even be a pumper when I said I sold what I had and wouldn't buy at this level. Get a life.
That makes sense and I can see your point but it all comes down to making money, or the possibility of making money in the future. I dont mean to say that P/E is all im looking at when i say that Alkermies is overvalued. The fact that LAR and AIR are non proprietary and will only give Alkermies royalties is worrisom, and the rest of the pipe is far away from approved. I dont think these products alone will provide sufficient earnings to deserve even a 200 multiple,
-and stocks that dont have earnings go to zero
I have to change my age on my profile so all you old dudes stop talking to me like a child
I didn't realize so many people already replied to this. But the boiler poster is right. The fact that it even has a P/E ratio means that it is making money. MOST biotechs are losing money, therefore don't even have a P/E ratio. A P/E of 100 for a stock like this is nothing, nothing at all.
I don't have anything against the ratio, they are just menat for a different breed of stocks.
Hey, I don't want to sound like an ass to you or anything, but for the good of your pocketbook I think you should do some more reading on investing and trading biotechs before your risk much money on them.
Honestly P/E and earnings don't really mean dick with companies like this at this stage. small biotech/drug delivery and medical device companies and such don't trade on earnings, they never did. P/E ratio's are more important with large growth companies, not companies that have hardly any drugs on the market but a strong pipeline. These companies trade on FDA approvals, and hype/hope.
When I see that the P/E is only around 100 at this stage of Alks, that seems cheap, to that that it's almost a bad sign. I wouldn't be scared of buying the right biotech that had a P/E of 600, I've done it before. P/E is 600 and bamn drug got approved, the stock went up to a P/E of around 800. Guess what happened a year later after the drug went to market? the stock was up another $10 yet the P/E was down to 200 and 2 years after that with the stock still higher the P/E was under 100.
Now of course what makes these so risky is that people are only willing to pay that multiple because they think there is a good chance for the future, so if the drug doesn't get approved or doesn't sell the stock could really tank, bringing the P/E to down below 100 or whatever.
The point of the rambling is just simply that you can't compare ALKS P/E ratio to the P/E of Microsoft. They don't work the same way and nobody would think alks is overvalued based on the P/E. They might for other reasons, but mainly reasons related to the future of the pipeline.
ALKS has an E in the PE ratio, unlike AMLN and NKTR which have no E. Based on your logic, AMLN and NKTR are worthless stocks? Don't you understand how rare it is to find a biotech such as ALKS that actually HAS earnings AND a broad pipeline of other products other than todays headline?
yah we know, risperdal=96.8% of earnings and Vivitrol has the rest. Thats not the issue. The issue is that earnings are growing at 12.5% put the P/E is 101. The P/E for that kind of growth should be 25 maximum. which values the stock around 6. If there is a reason to be long i'd love to hear about it but I cant see it.