There may be some near term resistance at the moving averages, but this is clearly an amazing opportunity for anyone to start a new position. The 30% move Friday will attract more momentum traders to get in, even if the stock were to fall Monday a few dollars.
Buyouts induce short squeezes.....$1B + sales for a first mover in the space produces profits, and analyst's average price targets of over $50......I'm buying more at these prices, I don't care about the buyout. Look at ZSPH's market cap before their buyout....and they're not even FDA approved.
sold at $18.50.....Kicked myself 15 times, then bought again when it fell to $18 once again....then wanted to jump off a bridge when I sold at $22.....And then I finally bought a third time at $24, and I'M NOT SELLING until the buyout!.....And I just added more in AH, before I think Merck HAS to buy this company to compete with the competitor who bought ZSPH.....And shorts, for God's sake, please stop the black box #$%$, it's not an issue!
I would have to say this is not sustainable, but the permabulls are out in full force on CNBC reiterating their 2400 calls on the S&P all in the next two weeks.
Isn't that the way it always works?
2300 for Tom, and 2350 for Jeremy! Stay with us, we'll make you money! lolololol
And if she doesn't, we know it's all about the markets....(as if we didn't know that before).
In another words, long live financial reengineering, stock buybacks, and many other gimmicks that public companies use to meet their numbers. This advance was telegraphed by the weekly chart, so it was somewhat predictable.
Hey retail....what are you doing here? Is today the start of the retest of the market lows? Risky shorting AVGO, but their numbers were only in line, so they should sell this on the news.
And yet the stock is up $5 in AH?
I'm not sure what that means, but every oil company I follow is getting absolutely crushed today.
By the way, my thesis has nothing to do with Obamacare being repealed or not, I just think the Obamacare revenue was a 2015 story, and will tail off next year regardless.
If growth slows in 2016 which I think it might, then the high valuation cannot be supported, and the market will reprice the equity. I've looked at this company to buy several times, but I have no position now, I was just responding with my opinion.
I don't think they'll make any changes either, but I was hoping someone knew the timing of the meeting.