i have seen sales people in a company spend like drunks to get businesses and they really don't care about profit. the more accounts they sign up, the more commissions they get...and the the entertainment expenses can be crazy.
that's a very big concern...they may not get real profit for a long time, if at all...the sales team is really spending on themselves as well as all those compensations...its scary.
am i right so far? people who bought below 116 yesterday, the time i posted this above, they are up some 5 bucks a share right now.
added more along the way and still sitting on them. those of you who took profit, bravo...but this thing is only going higher the rest of the year. i will wait a bit longer. it is still way too cheap here.
compared to other big biotechs, this thing is grossly cheap...it is trading at next year's 10 p/e as it stands right now. probably more like 8 as earnings continue to improve with raised guidance going forward..it should be worth at least 140.
an initial offer would attempt to deter the competition from starting a bidding war...that is why many companies slap on a pretty premium...we have seen warren buffet does it. we have seen google did it. we have seen msft did it and so on...you know there will be a handful of big pharmas and biotechs looking at icpt very closely right now. whoever comes in first will most likely be the one to take over icpt.
shorts didn't win. the stock was still up 39 bucks...true it wasn't up 100 bucks. but no way is longs losing here. the stock will be above 400 soon.
i bet this stock will be above 400 sooner than you think...and 500 in a year...
when gild was in the 60's last year, i called for buy on the mb...when it was in the 80's i call for buy again...now it is in the 90's, i'm still calling a buy on that stock...
icpt is trading at 300 and i am calling for screaming buy right here.