Biotech Values

[wallstarb]

yes and no - generally if its too complicated for them to understand it won't get priced in. i.e. they buy ANY headline that looks good (which means you can dump to them if the news isnt that great) but many times especially in bios a story that seems SOOOO obvious can be undiscovered until some news or event comes out and makes it very obvious. Generally speakign especially in biotech the market is very inneficient - and for you to assume that news that seems good to youbecause you have a phD in biocrap speak won't get priced into the stock price in the short term (or ever)

Think sound bites - the average stock buyer and fund manager wants to buy something with a slick sounding sound bite. Also many of the MAJOR spieks are caused by momentum traders - they have VERY short spans of attention - seldom lasting more then 3 - 4 days, once those buyers are done there needs to be some real support from fund buyers etc to avoid the major retracements ( see any biotech and look for the day where it traded 10x normal volume or more and then look at the few days following for what I mean)