I'm not complaining at all as I bought in at $5.32, but I hate when this bio-techs go straight up and then get sold off. I would actually like to see it base here around $8 or so and then start our next move up. I'm looking for $12 by March. Look for a pullback to around $7.75 or so.
Whew nice run up the last few days or so. But over the years seen this a few times. But with CROI coming up maybe something else is in the works this time.
Not many shares outstanding for a potentially high valued stock. Shares Outstanding5: 52.99M
at a 1B sales that's about $18.87 per share.
Multiple studies have shown that price to book value (P/B) is the most effective valuation measure in determining a stock’s performance. Although the price-earnings ratio (P/E) is considerably more popular, buying at low price-to-book multiples leads to better returns
Remembering and constantly applying this statement will do more to help you make money than just about any other investment concept. Benjamin Graham encouraged investors to look for companies trading near or below their book values in his 1934 classic “Securities Analysis.” More than 75 years later, buying stocks trading at low price-to-book multiples (share price divided by book value per share) continues to work.
The reason why book value is such a powerful measure of valuation lies deep in the concept of what book value is and what it means to an ongoing business concern. Book value is what a company’s net assets are worth. A price-to-book multiple of 1.0 means the company is worth the same as its net assets. This multiple means the market is indifferent as to whether the company opens its doors tomorrow. If the business is shut down, the debts paid off and the assets liquidated, shareholders’ wealth will, theoretically, be unchanged. If the company stays open, shareholders’ wealth may increase or decrease—not liquidating the company essentially becomes a roll of the dice.
Silly Silly Silly - Biotechs expense all of their R&D. SGMO has spent 275 million to develop a cure for aids which works but is valued at zero on its books. Price to book on biotechs is meaningless and to advocate it as a measure is stupidity.