The best time to buy a stock is when it is most disfavoured...emotionally. Are we there yet?
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The best time to buy a stock is when it is most disfavoured...emotionally. Are we there yet?
Obviously hard to tell without the benefit of hindsight but if you're right in that its primarily one or two large insiders selling then it wouldn't be a great look if it turns out they knew something in advance of the market.
If its just the Masfens selling then its likely that they are de-risking/profit taking or that they have something better to put their time and money into.
As has been posted already, the NASDAQ's Biotech sector slump (plummet?) this past month is IMO the single most important factor influencing the sell down of PEB (and probably also XRO, BLT, WYN, etc). I'm confident we will see a bounce-back of sorts from the NASDAQ tonight off its Feb 3 support base of 3440. As to how sustainable that recovery will be, we won't know until later this month...but any bounceback will IMO lift PEB's sp well above the psychological support level of $1.
$1.20 is my short-term target. Trading to it.
BC
Personally I'm looking at the opposite. The stock has taken a big hit already and with big seller(s) offloading the million dollar question is: who will be buying?
Retail investors? Sure potentially there is a handful who see the stock as trading at a good discount to what it may have been worth but do they outnumber the sellers?
I also can't see that many big instos will be wanting to jump onboard for a value play as:
(A) the stock is very hard to value quantitatively, and
(B) there is a potential sector rotation going on, and biotech growth stocks are a very risky place to put your money, at least in the short to medium term.
I'm staying well clear until the dust settles.
Why does every sentence in a post need to be debatable, Tumeric? My point is that the converse will also be true - namely, any bounce-back in the sp of those stocks in the Biotech sector trading in the NASDAQ 100 will almost certainly produce a bounce-back in the sp of PEB...and that the NASDAQ 100 has a Feb 3 confirmed support level of 3440 which increases the likelihood of a bounce-back tonight.
I'm trading to it...but of course nobody is saying that you need to. Each to his own view. Picking momentum shifts is as much as art as it is a science (FA, TA or other). The proof will be in tomorrow's trading. Hoping not to be proved wrong (not just for my sake for the sake of others holding).
Discl: holding again, as from this morning.
BC