The market PE for the S&P 500 is 17. Historically this is on the high side with the mean being 15. However, multiple expansion has ALWAYS accompanied a reduction in interest rates. It is a simple algo that is used. You can scream and moan about interest rates being manipulated, that they are artificially low, that they are set to explode, blah blah blah, but they are negative in many places in the world and we are on the zero bound here in the US and I see little evidence they are going higher (this can change but not for now). Biotech has ALWAYS traded at a multiple to the S&P. BIIB has a forward PE of 21. It has net cash of about 1.5 billion dollars and last year on 9.7 billion it netted almost 3 billion! PE is not looked at in absolute terms but in relation to earning growth. Taking BIIB earnings growth into consideration, remembering that biotech trades at a premium to the S&P, given where interest rates are how is a forward PE of 21 given a market PE of 17 for a top in class biotech company with the pipeline BIIB has over priced? Where is the bubble? Ok ok there is speculation out there. There are biotech companies like CLDX with almost a 3 billion dollar market cap that don't have one approved product but that is not BIIB. Look at ACT one of the biggest names out there. It's forward PE is 14! How about CELG. Here the forward PE is 18. Since when does a bubble exist when one of the four horseman has a market PE and has 1.9 earnings growth as compared to the S&P. How about AMGN-- a foreward PE of 15-- again it is trading at a discount to the market! Now it is early in the Alzheimer's game for BIIB but this disease is an epidemic and costing the world in the hundreds of billions of dollars. Whether BIIB has a cure for it is yet to be seen, but imho at this price you get a free call option on their success. Does this mean there will not be a bigger pullback? I don't know. But talk of a bubble seems misplaced.
So they will raise about 1.4 billion and even after diluting the #$%$ out of this pig they will still have 5 billion in debt! HAHAHHAHHAHA see you at 25 loooooooosers
this is enormous!!!!
Wait until some of these over levered plays i.e., GDP, AREX go bk. Then you can look to get long. Crude should stabilize around 30 a barrel and should take about another 3 months. Until then you are in a world of pain.....
Where will they price the secondary? Let me explain how that works: First, they hire a #$%$ firm like Roth Capital. Then Roth goes out tells the everyone they know that BIOC is looking to raise funds. Of course, they all short the stock. Only when they have shorted this thing to death and only when they have found one of the shorts looking to cover at a "reasonable" price will they announce the secondary price. It looks like it will be priced around 2 bucks which just goes to show you how hyped up the news was. I imagine the pricing of the secondary will be early next week.
Company HAD 5.1 million in cash as of last quarter and they lost 5 million so effectively broke and in desperate need of money. Where and how they do the raise will be interesting. Wait for the secondary. I think it is priced at 2.25
A 18,491 (1) A $ 21.97 18,491 D
Restricted Stock Units 02/20/2015 A 73,964 (2) A $ 21.97 92,455 D
Table II - Derivative Securities Acquired, Disposed of, or Beneficially Owned
The application and the recovery potential for wells heretofore thought non economically viable even with crude at 40 could increase EPS for FTK by 25%
Stock should trade for cash which they are bleeding. Look for 5 bucks
You fools. 3 times normal volume and stock can barely move. That is called bearish dummies. That is some big fund hmmmmm think UK selling..
So my friends this is the end. LTBR has given up on consulting (but as I said in many posts it never made any sense). They fire their CFO (why do you need one when you have no earnings and no r&d?). LTBR has nothing more than a dream and it looks like nobody is quite believing i that anymore. It amazes me that Seth will escape prosecution but alas that is capitalism. Of course, he just may have one more pr up his sleeve. Maybe you get a chance to get out on this pop should it ever come but it looks to me that it is over. The company doesn't even care if it gets delisted. I did try and tell you guys but hope springs eternal. Well hope for that last PR but don't be fools ... sell the pop
I hear it is all over the northeast and as far as texas
Nationwide outage ... wow... watch AT&T subscriptions rocket.....
check again my friend. It is all of Manhattan. Look it up.
You will see the outrage this weekend on news....
Look it up. Vz has #$%$ off all of manhattan and i hear outage also in pittsburgh, maryland and other states. last word from vz expect no service all weekend. when this hits mainstream media it will tank. it is not an outage but an outrage