This is absolutely sickening. Whether or not some of our local pendants knew anything or not...they were right...at least to this point. Was it Wedbush that had a $7 target? To me, I am simply sickened that so many had such a lofty price and those jerks...toady...at this very point in time...are closer to being correct.
I will not buy anymore as it's like catching a falling knife...this is as brutal as I recall. The BOD should step up to the plate and issue some reassurances or something. After-all, it is their responsibility to protect shareholder value...and I don't see much protection going on...AT ALL. So, from the days of $20, we are down 40% with no end in sight....well, one end.....
Come on management, how about a bone.
Bugsey I recently had the pleasure (not) of sitting in on a presentation by some money managers trying to get a piece of a pension fund that I am a trustee on. They said that recently they lightened up on their biotech holdings by 10 percent. I asked, exactly how do you do that? Do you just go down the list and liquidate 10 percent of each biotech stock? There answer was yes - apparently it didn't matter if they just completed a positive trial, just got FDA approval, or just released good data. If they were in the biotech category, they were sold. Sounds crazy, but this appears to be how it works in the massive world of money management. The end result is that highly liquid bio techs are down 15 to 20 percent, semi liquid Dow 30 to 40 percent, and highly illiquid down 50 percent or more. It sucks because the massacre happened at a time when Insmed had just released data proving that there drug can save lives. It appears the sector firmed up this afternoon and they will go back to trading more on their own merits soon. Insmed has more news coming out over the next two months then they did over the past few years, if the news is good I hope this downdraft becomes a bad memory....
Hang in there Bugs. Never underestimate the power of momentum, both down and up. It's likely that the biotech funds, both ETF's and open-end funds, are seeing massive liquidations. The managers in the open-end funds have to sell to make cash available. It's likely that they're more interested in holding on to the GILD's and BIIB's and less willing to hold onto something with no revenues. In the case of the ETF's, there's too much money to be made by the sponsors NOT to work the arbitrage by selling shares of the underlying companies while simultaneously buying the ETF shares (thus retiring those shares). Selling begets more selling until the point where we're sick to our stomachs, wondering why we ever bought this piece of dung. I'd be far more worried if INSM were showing this type of action in an up market.
There very well may be something more sinister going on here, but I'm keeping the faith. With respect to the selling and with all due respect to Yogi Berra, it will be over when it's over.
Tom, the issue is not the momentum but it is the recovery after getting cut by let's say 12%. We were down to the $11.80's when the market (NASDAQ) was down at its max. We only recovered to $12.72 or so when we got back to green which is about 1/2. THAT is what has been happening to many BIOs which SMELLS big time. So, I am not sure what is really going on here but this is not a "manual" sell off. Systematic is a better way of putting it. There just does not seem to be any rhyme or reason to the gorge we fell into versus what it really means for the stock itself. For sure Insmed is not alone in this fiasco.
This is what always happens to Insmed. I owned this stock for almost 8 years, but was done with these huge downward trends. So I bailed out in November and missed the big run up...I would have been greedy and held right through the 22.00 price and now be sitting here like everyone else shaking my head. Insmed doesn't know how to be successful.