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IBDvalueinvestin (99.66)

Good Post AllstarVulture

Recs

6

June 23, 2010 – Comments (4) | RELATED TICKERS: AFFY

A completely speculative pick on my part. AFFY has been hammered on the news that Hematide, a drug designed to treat anemia in patients with chronic kidney failure, could lead to heart-related side effects. As of this writing the stock had a lost a full 2/3 of its pps value. Over-reaction? Maybe. What's being lost in this news is that the drug actually met its goal in its late stage trials. So, where from here? My wager is that the drop is at least partially fueled by panic selling. But do your own DD. This could just as easily go to $6 and stay there as it could rebound to $11.

 

IBD thoughts on AFFY:

(It went down almost -$16/shr already to $7.47 so the path to least resistance is to $11 not $6 especially since drug met targets and AFFY received a $30M milestone payment because of met targets)

4 Comments – Post Your Own

#1) On June 23, 2010 at 12:17 PM, allstarvulture (< 20) wrote:

Wow!  Thanks for the mention, IBD.  The least I can do is rec the blog.  :-)

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#2) On June 23, 2010 at 12:23 PM, IBDvalueinvestin (99.66) wrote:

Your welcome Allstar, you deserved to be mentioned since you had the top comment on the Fool for AFFY

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#3) On June 23, 2010 at 12:28 PM, IBDvalueinvestin (99.66) wrote:

Oh by the way Allstar did you read the seekingalpha article, AFFY can still get approval minus the 5% of the population with side effects. $20 target but $10 neartem.

 

Only  absolute complete panic selling could send AFFY down into the $7's or near Cash value, leaving all pipeline drugs worth at only  $1/shr.

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#4) On June 23, 2010 at 1:03 PM, allstarvulture (< 20) wrote:

I saw the article this morning, IBD.  It made me feel a little better about the pick.  Well, that and the announcement about the $30mm milestone payment.  Best of luck on all of your calls!

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