In 1974, the great financial analyst Benjamin Graham wryly described the efficient-market hypothesis as a theory that “could have great practical importance if it coincided with reality.” Mr. Graham marveled at how Avon Products, which traded at $140 a share in 1973, had sunk below $20 in 1974: “I deny emphatically that because the market has all the information it needs to establish a correct price the prices it actually registers are in fact correct.”
So far, the revenues and income remain in line with rosy projections. There have been no permanent setbacks (delay on GSK Hep C) or bad news, insiders are buying. The company is in far better shape than it was a couple of years ago (although not reflected in the share price).
Holding my breath and hoping for some efficiency in the market.