I believed SGen was worth $55 in March, but I sold a few shares just to be prudent. But I spent the proceeds on buying more SGen at $49, $46 and $43. When it dropped into the mid 30's I envisioned an opportunity of a lifetime, so I borrowed significant funds to buy even more.
This huge drop was probably a combination of: 1) Many Biotechs were overvalued, 2) US Congressmen ranted about the high cost of Sovaldi (which GILD will be able to justify when asked), and Janet Yellin's inappropriate loose lips about Biotechs being overvalued.
I still believe SGen is worth $55, but it might reach only about $52 for the remainder of this year, unless there is dramatic news at one of the conferences.
What I've come to understand about SGen is that there never seems to be any dramatic news. They just keep delivering confirmation that everything is going according to plan. SGen's pps will eventually reach $100. My "good until canceled" SELL order is $99.
Their "drama" is when a couple of people die during a clinical trial. Most of the participants in their clinical trials are very sick people who have not responded to chemo & radiation, getting weaker and weaker. When a couple of patients die, one of the money managers shorts SGen and publicizes the deaths. OMG!
I'll be interested to hear other perspectives.
Biotechs have been beaten up for a while now. Good and bad companies were grouped together. Now the cream of the crop is starting to rise to the top. The news is just a catalyst for what IMO was going to happen anyway.