Replies to post #4887 on Momenta Pharmaceuticals, Inc. (MNTA)

[go seek]

it all boils down to different strokes (strategies) for different folks...

there is not necessarily a right or wrong...

[DragonBits]

One final obervation on this. How can someone believe themselves to be a trader yet say they don't want to take risks?

Investing is less risky, buy MNTA for cash you don't need for 3 years and look at it once a month.

BTW, MNTA isn't really a stock for traders, it doesn't move like an APPL or AMZN, or index options. It doesn't really have huge volume, it's market cap is rather low, and big funds can't jump in and out without swinging the price all over.

ciao and good luck

[10nisman]

If the end is a pps of at least twice t he current value, what's a couple of bucks for insurance ? Beside mnta price has been acting like crap. I am no believer in conspiracy and I do firmly believe in the short term pps is strictly set at the margin by retailers' action.

Who cares about the price action - I can give you a long list of companies that have acted in a similar fashion that are also high quality companies. The risk is MNTA announces material news and you miss your chance at buying in a couple bucks higher (buyout, mC FDA Approval, FOB news, etc.). For example, MNTA traded down significantly the 30 days prior to receiving mL approval and thus anybody scared out of the stock missed a large move. Unlike mL, if MNTA receives FDA approval for mC it won't be going to $26 and losing half its value. I understand being risk averse however MNTA's intrinsic value is not tied to the economy and thus one should realize at the current $15.90 price you're only paying $8.90/share for the business (as MNTA has approximately $7/share of net cash). Thus on a market capitalization (net of cash) MNTA is being valued at $475M.