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 Biotech / Medical : Biotech Valuation


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To: Jack Hartmann who wrote (30830)4/3/2009 3:37:52 PM
From: Biomaven2 Recommendations  Read Replies (1) of 40320
 
The DNDN implied volatilities on their options are indicating a significant May event, so that would be consistent with the Apr 28 meeting.

At the end of the day, even if their results are good I could see the FDA giving them a hard time on the manufacturing side. But shorting a pop on good news could also be very hazardous given how crowded a short this is. So I personally don't see myself playing this one in either direction. (I generally believe it's a lot easier to make money in biotech with stocks that few people are talking about rather than ones with active and vociferous followers and detractors).

Peter
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