If you thought it could last, you have ask yourself, did you think they have repealed history?
Take Esperion (ESPR) and Prothena (PRTA). These two were the last ones out of the chute, the last ones to skyrocket before things got ugly. Esperion gave you some interesting data last week about a drug that may or may not be available in the 2017 period that can be used to fight bad cholesterol. It got good results and then skyrocketed for several days where it then did a gigantic secondary, $150 million in stock at $100. That should have stopped the more than 100% move in the year flat. Nope, the stock went up another 12 points. I was incredulous. But after Pharmacyclics (PCYC) got that bid from AbbVie (ABBV), you could see the "who's next" wheels turning.
Now here's a stock that is in incredibly weak hands after that secondary, and like last year at this time with the big cloud secondaries, we are going to see some real damage.
Or Prothena. Here's a company that's developing a novel anti-Parkinson's drug that's quite early on its testing. I said repeatedly when I had them on that it was speculative but, again, Parkinson's is a big unmet need.
This stock, which jumped from $28 to $39 last week, is now back to $36. At a certain point, it's a buy, but right now? There's no new data about to come out, so I don't know what you would do other than say OK, it's going lower, I will take that beating hoping that it gets a bid or that I will buy more lower. That's what happens when you stay on too long, which, again, is why I said you need to take something off the table if you have big gains and don't buy.
Finally, let's talk ISIS Pharma (ISIS). As I wrote last week when the stock got to $74, I no longer wanted to defend it. So many people claimed that they bought it at $69 on my recommendation right before it fell to $62. When it got to where it was impossible not to have a profit -- in other words, its all-time high -- I told people they were on their own. I was done. I wasn't going to subject myself to ridicule any longer for liking it. So they were free to go.
I reiterate that view.
Sorry, I am not going to come back to this group until the velocity of the decline dies down so people won't get hurt or at least get hurt all that badly if they haven't bottomed.
Don't worry, these will come back. Next time, though, remember how I started Friday night's show, with a clip of Michael Douglas saying "Greed is good," and then I criticized him for being wrong.
And it can really crush an undiversified portfolio with nothing but high-fliers all hoping to be the next Regeneron (REGN) or Pharmacyclics.
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