Biotech Values

[DewDiligence]

>> Does this really indicate the stock is being accumulated or not? I have no idea if this really means anything. Any insight would be appreciated. <<

“Accumulation” is a word you see a lot on message boards, where bulls frequently claim a stock is being accumulated. They rarely if ever define the term, however.

It makes sense to talk about a specific buyer accumulating shares if in fact this can be ascertained from SEC filings or other sources. (For instance, I recently noted that a prominent hedge-fund operator was accumulating shares of BPA.)

However, every open-market purchase is also a sale. To say that a stock is being “accumulated” without specifying exactly who is buying adds no useful information. I dismiss such statements as gratuitous cheerleading.