Biopharma Run-up is Ruining My CAPS
The recent summer run-up in the biopharmaceutical industry has been responsible for a loss of over 1,300 of my CAPS points. This is, of course, my fault for shorting them in the first place. I guess I just never thought it could get so out of hand. For instance, my red thumb on Peregrine Pharmaceuticals (NASDAQ: PPHM) is worth almost -900 points since June 1st. I was feeling pretty confident in shorting crappy companies with low market caps and bleeding balance sheets, so I made the mistake of red-thumbing at $0.54. Funny thing is, I remember seeing zz's green thumb right when I went to submit my pick and thought "Gee. Maybe I should follow the big guy." Well, I didn't. And it is costing me dearly.
zz has a ridiuclous understanding of the industry and follows it much more closely, so he is able to flip picks more quickly than I care to. My recent ordeal just makes me admire his skill even more. New members please take note!
Has anyone else been screwed by the biopharma run-up? I have set (stop-loss) close limits in CAPS hoping to catch a better score on my picks and get out. Should I hold off on my limits with any of the companies listed below? I don't think any of the runs are completely sustainable, but I'd rather just take my lumps and move on. Accuracy is not an issue for me here.
All feedback or discussion welcome. You will enjoy my misfortune below =)
My top-losing picks (score of -20 or worse):
PPHM -878.56 (2nd worse on CAPS! Yeah!)