Ernie is spot on. There's also the opportunity cost of investing in a company like EXEL vs something else. (Buying BMY post MEDX acquisition for instance would have given you all the enthusiasm for an equally compelling oncology franchise and the safety of a large company with good cash flow.) That said, EXEL still has an attractive risk reward profile.
Cobimetinib: And that's a compelling reason why the Cobimetinib Roche-Genentech/Exel collaboration is so positive.The money and power of Roche a proven company.Hoffmann-La Roche AG, Basel, Switzerland, is one of the largest pharmaceutical companies in the world. Roche-Genentech just confirmed guidance on their recent Q3 earnings call that they expect to have top line data and pursue regulatory filings for cobimetinib from the coBRIM study in 2014 as well. It's sure an Ace in the hole for Exel.It can add money to the Exel coffers. And give further proof of Exel's competence.
Most people here do not have a clue about risk/reward, by listening to them. They buy on excitement when stocks like this tick up and sell when they drop back down. IF they actually were doing their risk/reward analysis, then they would be calculating just when the reward is great vs the risk. For example(without getting complicated): if you bought this stock when it was trading in its low range, under $4.50, then your risk was FAR less than buying above $5 range.IMO You actually could have been up still well over 15 % and either holding or have traded, waiting for another cycle. Instead of course many buy the hype and will have got in at nearer to $6 and be DOWN now. making their risk/reward very poor, in reality. That is what discipline AND some actual analysis of REAL risk vs POSSIBLE reward does for you. It gets you REAL, instead of in fantasy land. Want to profit here and elsewhere? Figure it out BEFORE you get all excited, make a plan and STICK to it. It REALLY IS that simple, if you want to make money over the long term, versus wonder why you lose.IMO
"Would u pay $5 for a stock that stops cancer from metastasizing?"
I would, but your premise is very much an overstatement. Cabo temporarily stops cancer from metastasizing for some patients. We can't even say yet whether that effect has any survival benefit attached to it.
I would for long term investment, but not short term where someone has a huge bet on the price being lower within two weeks of today. Hard to deny Nov. 5 PUT position. Check it out short term guys before you babble on. LOL As I said. My buy range looks very good still. If the short speculators try and profit driving the price down over the next two weeks, then buy for either short or long term.IMO If not, stand aside on the trade, unless you really think they will not make every effort to hold price down for closing or getting out, sooner than later. On the other hand, if they drive it down, then it might just be right back in my trading range, which many made fun of as they bought on temporary spike up. Still laughing???