It"s all part of the game. The street downgrades in order to get the "not so savvy investor" to sell and drive the price down....when it drops, that's when the same guys who recommended to sell, jump in and grab millions of shares. Something BIG is brewing! CRAMER IS A HARVARD LAW GRAD. As with many lawyers, they have to build a case to sway others even if they are representing criminals....don't be manipulated. Do your own DD.
"Cramer was screaming to sell ARIA in 2010 when the s/p was in the $2's..."
Crazy, isn't it..?
Cramer has been willing to endorse EXEL as a spec in the past w/ a PPS over $6/share with no approved drug...and no shared P3 w/ Roche. Now that Cabo is approved...the IP has been peer-reviewed and published...and Cabo's become the drug every oncologist wants to keep in his toolbox...he's disallowing all the advances of the past 2 years. If MM takes this one much lower I'm dumping 200 shares of BIIB and putting it all into EXEL.
The idea of applying forensic accounting analysis to a develop stage biotech is strange indeed.
I wonder if any development stage biotech would be a buy candidate if forensic accounting is the basis for valuation. Very surprised at Cramer - I wonder if he knew about that report - he should have.
The Street downgrade is much like a Motley Fool recommendation. Forensic accounting. I am inclined to consider this a very bullish sign. Those with huge short hedge positions want to cover low and the clock is ticking on Phase 3 trial data. In order to move the sell volume up they have to increase the common investor turnover. So you ask your buddy at The Street to publish a factual forensic accounting based "downgrade" and hope you see an increase in selling. Anyone in biotech investing knows forensic accounting or "fundamentals" is not as meaningful at this stage for EXEL. It's a very real possibility EXEL could see a 3-5 times increase in valuation over the next 18 months. And that is why I think a "research firm" like The Street publishing a forensic accounting based downgrade is in fact, very bullish.
Good post Duffer. Just a reminder - The Street posted a downgrade for HGSI in February 2012. HGSI rejected the first GSK buyout offer that April. The rest is history...With Cramer and Nomad in agreement on a sell reco for EXEL, I'm more comfortable than ever.
@duckduffer, I agree with you 100%, my question though is WHY does this type of manipulation work, I am very new to trading, in fact EXEL was my 2nd purchase ever, I bought early October @ 4.99 but have averaged down a few time, but anyway my point is even a Newbie like me understood right away the manipulation in the Street downgrade, I would think that most who purchased EXEL would understand this is a long term play. My daughter graduates from High School in 5 years, and I am hoping this one will help pay for her college!!!