Todays price action reminds me of some past biotech's , PXS for example.
It seems to me that pundits trial results seem to always be expecting that the outcome is going to be positive , yet more times than not the trials are negative or require additional data or trials.
It also reminds me of the high volume that used to surround drilling for oil , before the rig arrives the consensus is we are going to get a strike , when oil was over $100 per barrel earnings and fundamentals of current data went out the window
In my view buying explorers, and biotech's is simply to risky , better buy after trial success or positive strikes , they always need money to fund growth and thats the time to enter
Just my opinion , I think the fund managers will keep selling for a few weeks yet , as the blue sky that attracted them is off the table for an indefinite period
The questions I would be asking
1. Will existing sales slow now the trial has disappointed
2. Will they need to re invest significant capital to further the bio medicine to the point it is effective
3. What PE will the market pay for a company with a partial solution to liver cancer ?
SRX Price at posting:
$17.53 Sentiment: Sell Disclosure: Not Held
