It looks like they are sandbagging. For those that don't know the term, sandbagging is when a sales/management team forecasts lower than what they expect so that they can reap the rewards of a "better than expected" announcement in the future. They're gonna get clocked with a class action suit, but this will be barely a blip on the radar for them. It surprises me that the chairman would be so quick to buy shares after Friday. He's inviting an investigation by doing that.
They can always say this is the actual forecast and it's subjective. The chairman could get in much bigger trouble than the company. He may face scrutiny on the timing of the buy and civil fraud cases are preponderance of the evidence (i.e. the scale just needs to tip in one direction or the other). He would probably settle for a fine. Sure, I'm looking way ahead but this is how something like this would shake out.
To investors, your interpretation of a "crooked" company is meaningless. In fact, it's a positive because sandbagging usually leads to better than expected quarters and future forecasts.
A close north of $320 would have signaled leg 1 of a new bullish reversal. We finished at $319.93. Great day. I think a few investors held on the sidelines to wait for GILD earnings AMC. GILD just announced and it's up $4-5 after hours. We got just what we wanted here. Looking forward to another strong day tomorrow for BIIB.
BIIB did not spend $2B on BIIB037 yet. This is almost certain to change given the situation with earnings. They will get smart with what they spend on AD as opposed to throwing mega cash into the wind. I still think this drug has an excellent chance of success, but more importantly it is how BIIB manages the process and financials around it.
PFE and Abbvie are possible suitors. I would say there's a better chance they acquire than be acquired, mainly because they will place a high premium on their pipeline. Perhaps PFE will pay a big premium for it but I don't think Abbvie would. There's virtually no chance of a hostile takeover. So in my opinion if PFE wants to shell out $480/share BIIB will take it. Otherwise I cannot see it happening. Just an opinion, I certainly could be wrong.
For those charting enthusiasts, today's intraday BIIB stock chart is completely different than any pattern we have seen for weeks if not months. There is a clear buy on dip mentality on today's chart which shows higher highs throughout most of the day. If this patterns persists through the close we are seeing a consistent level of buying into weakness on this stock. I should also highlight that we are trading about 30% above average volume today.
A few very interesting suitors. I am a little surprised, but now at $70 billion this company is much more attainable. They are also looking at strategic acquisitions.
Well, way off but your guess is as good as any. Agree this correction is healthy and overdue, sharp and probably quick. Good oppty to buy in at cheaper levels right now. You won't find many AD successful phIIa companies trading under 100M and under $1.
A lot of people are saying this. I am an AVXL shareholder myself and up just a hare under 2x. Yes BIIB should buy them, but that would have no impact on you as a BIIB shareholder right now as it's too small and too speculative. I know you're reading about the nice phase IIa results but assuming you're knowledgeable in biotech you still know what a long shot AVXL is for AD.
That's to be determined. It will not be a new drug approval. But could be M&A, expense reductions, etc. Even the talk of M&A and/or perception that the company is in play (or playing) is a catalyst.