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Replies to #23556 on Biotech Values
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poorgradstudent

02/08/06 11:33 PM

#23560 RE: terry hallinan #23556

terry,

>People will never disabuse themselves of the odd notion that Somebody Up There always knows something and is fixing things. I knew a guy that worked all the way up on the third floor and he didn't know any more than I did.<

My view on the whole manipulation deal is that it is orders of magnitude lower in frequency than investors believe, but it is still greater than zero. Kinda like honesty and politicians.

I brought up the imcl example because I am absolutely positive that it was one of the few examples over the years. Check out these historical prices:

Feb 11, 2004 Hi: 43.39 Lo: 41.82 Close: 43.10 Volume: 3311600
Feb 12, 2004 Hi: 44.30 Lo: 33.50 Close: 34.00 Volume: 7505700
Feb 13, 2004 Hi: 47.02 Lo: 43.40 Close: 43.79 Volume: 17544600

Wonder of wonders, erbitux approval was announced after the market closing on the 12th of february.

Cries of manipulation in biotech stocks are not exactly a rare event. Hell, for any developmental bio, there are more objective reasons to sell than to hold, so any downdraft should not be surprising. But every now and then, it's nice to spot the market "at work" and confirm that the old manipulation-detector is still functioning despite the high number of false positive signals.