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Insmed Incorporated Message Board

  • justarook04 justarook04 Mar 24, 2014 5:15 PM Flag

    For Blue Eyed about the past 2 days for Biotechs

    Partially explains the negative impact on Insmed but that should change soon (put the bashers on ignore as they will still be posting - FUD will find them).

    Are Biotech Stocks Oversold?

    "After Friday’s 4.7% drop, the IShares NASDAQ Biotechnology ETF (IBB), continued its slide into Monday morning’s trading activity. Combined, the two day slide has caused the ETF to drop more than 8%, and has shown no signs of a quick reversal.

    The recent selling pattern is believed to be caused by two major factors; First, on Friday, House Democrats on the House’s Energy and Commerce Committee requested a briefing on Gilead (GILD) Zacks Rank #1 (Strong Buy), regarding the high price of their new Hepatitis C drug ($84,000 for the drug). Which has sparked some fears regarding potential regulatory risks, and or pricing caps for the sector. Second, jittery retail investors. These Retail investors have seen Biotech stocks consistently appreciate over the past 16-18 months, as they have easily crushed the market (comparison chart below shows the performance of the Nasdaq Biotechnology ETF verse the S&P 500), though they now appear to be facing some selling pressure.

    Looking Forward

    Currently, the NASDAQ index is more than 400 times PE, and almost 94 times estimated earnings. Naysayers have been searching for bubbles, and with the Fed unwinding the QE, bubbles are bound to appear. It appears as though, Biotech is one of the first areas under attack.

    In reality, most analysts believe that this correction is to be expected, and that it will reign in the recent Biotech rally. Even with the Bear Investors looking for a bubble, jittery Retail investors, and House Committee investigations, the street is not too concerned about the recent expected correction."

    Sentiment: Buy

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    • Well bud that explains the whole Bio sector getting hit but you know that the liars here have their own agenda and they`re who are getting me so steamed. Obviously in the end it`s probably a good sign that we`re about to see a huge spike up in share price,but today it gave me a big headache and I actually had to take a nap,so I missed the turnaround until I woke up after the close to see it. Thanks for your post,and GLTA INSM LONGS!

      Sentiment: Strong Buy

14.04-0.03(-0.21%)Oct 21 4:00 PMEDT