Monday, July 18, 2005

Biotech Short Rally?

Looks like the biotech rally last week was caused by short covering. In the July 18 issue of Bio Century, analyst stated that the short interest in the IBB (a biotech ETF) was at a 52 week high in May. The good earnings report from Genentech and Genzyme may have been the catalyst for the shorts to cover. I've never really paid much attention to the short interest, maybe I should. All eyes on Amgen tomorrow...

3 Comments:

At August 01, 2005, Blogger Jonathan said...

I'd be interested to hear your thoughts on DDD? It's a small company, not sure if it's even on your radar.

 
At August 04, 2005, Blogger Money Turtle said...

I'll get back to you... I need to do a little reserach on this company. First glance, nothing exciting, but we'll see.

 
At August 06, 2005, Blogger Money Turtle said...

There's not much information on their web site. I had to check the SEC web site, here's the link:

http://www.sec.gov/Archives/edgar/data/934936/000119312505072944/ds3a.htm

I personally would not invest in this company, there's just too much risk and uncertainty. They only have enough cash to last to early 2006 then they will need additional financing. They will continue to "incur significant operating losses in the future." They compete with much larger companies such as Alza, Andrx Corporation, Biovail, Labopharm, Penwest and SkyePharma. I don't see anything unique about their products. Stay away unless you want to roll the dice. Just my opionion.

 

Post a Comment

<< Home