Biotech Values

[MobyInvestor]

Dew,

I agree that large buyout premiums happen more often than not. All I'm trying to add is some context to those premiums from the perspective of the investor, not the acquiring company.

If all someone hears is the premium relative to the previous close they're going to get a distorted view of the potential gains possible.

That view, IMHO, leads to a mentality that's unrealistic considering that half of these deals were bought out at prices 15-50% below their 52w high.

In the end, buy & hold is also a canard. Investors should always cut their losers while holding onto their winners.

Regards,

moby