Replies to post #343702 on Avid Bioservices Inc (CDMO)

[Cubflyer1946]

Overpriced toxic stock. Pretty much sums up CDMO!

[vinmantoo]

Successful investing calls for the appropriate identification of overpriced stocks and correctly priced stocks. However, in practice, overhyped toxic stocks and fairly priced stocks are intermixed in the marketplace in such a way that it becomes difficult to distinguish between them. Investors who can correctly spot overpriced stocks and shun them at the right time are the ones likely to make a profit. Usually, toxic stocks are fraught with huge debt loads and are susceptible to external shocks. Also, the unjustifiably high price of toxic stocks is short-lived as the intrinsic value of these stocks is less than their current price. Quite naturally, if you own such toxic stocks for a long period of time, you are sure to incur a huge loss of wealth. Illumina Inc ILMN, Lantronix, Inc. LTRX, Bentley Systems Incorporated BSY and Avid Bioservices, Inc. CDMO are a few such toxic stocks.

I would venture it is related to when the company was called AVID and they were hyping BAVI as the cure all for all cancer as well as viral diseases. That reputation takes time to overcome. If you asked for details on how they came up with their calling CDMO a toxic stock you can be pretty sure that is what they will cite.

[westjtter]

Well looks like the Toxic report is not always that accurate as we had a very good CC and the stock is way up(and I believe heading higher in the weeks ahead) after market.

I see that Illumina is also up over 16% today....not bad for toxic stocks I would say....maybe Rimmi Singhi needs to go back to his research notes as his batting average is not so good!