Wow, what a deal. Roche is acquiring ONCE for $120 per day, or $4.8b. As a result, the entire biotech sector is lit — especially gene therapy stocks like QURE+17.79%, BOLD +17.62%, RGNX+11.83%, CRSP+7.36%, SGMO +6.91%, VYGR+6.63%, EDIT+5.99%, NTLA+5.83%.
Futures are +130, in spite of oil being down 1.6%. Look for a potential blow off top today — especially if oil continues to weaken. I have about 5 stocks this morning higher by 5% or more, so that has me somewhat suspicious.
Large-cap BioPharma have spent ~$36B on acquisitions for shiny sexy cell and gene therapy:$GILD -> $KITE $12B$CELG -> $KITE $10B$NVS -> $AVXS $9B
Roche -> $ONCE $5BWill any of these deals generate a positive return?
The first two not looking so hot so far…— Andy Biotech (@AndyBiotech) February 25, 2019
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You wrote about trading in the middle of the move recently, what I call playing between the 30 yard lines. We are likely beyond the 30 yet I’m strangely complacent. The market appears very strong. Too strong? Maybe, the Shanghai exchange was up 5.6%.
I think the markets are fine except for an overdue pullback but price action is king. Sometimes you gotta buy and sell like hell to stay on the right side.
Cool. Barrick makes hostile bid for Newmont.