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They are in the pharma, healthcare etc. business. We do not like it at these prices. The count is not perfectly clear but there are at least three “wedges” and the stock is doing the Mnt. Everest thing with a high of $97.23 . A sustained break of $90 could lead to $65 in a very short period of time, lower levels after that.
A count not shown would be a large B-wave from the lows of 2000 at about $17. The risk/reward is simple not here. Time to sell.
Like COH below, this is another member of the $5 to $75 club. Who said we were in a depression. The Fed is creating another bubble as it pursues it’s third mandate, the first two are already irreconcilable as they are mutually exclusive (inflation/interest rates and full employment) and adding a third, surreptitiously through the backdoor, but nevertheless quite openly and deliberately, will just serve to confuse all and mostly the Fed itself.
The big picture is less clear, on the other hand wave A down is very clear. They will be buying more of their own stock which is almost always done at too high a price. Expect the rebound to get to about $61, then wave C should start.
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The stock stops dead in it’s tracks where the two parallel trend-lines intersect. Presently it is on a path towards the lowest point of the triangle. It should do an A-B-C at the very least, perhaps a zig-zag as shown, only a little further than that. Wave 4 of previous degree is at $10.
There is not much chart to go by.The assumption is that the $44+ high immediately following the senseless orgy of greed attending the IPO, is the high. A correction from there would take on the A-B-C shape, probable a zig-zag considering that the B did not even get close to those highs. Should the C equal A, not uncommon, the target would be roughly $15/16. If we leave the gap in the middle the target is around $18/19. A total loss of 62% would target $17. Our best guess $17. At that level you would also be down about 50% from the “official” issue price if you actually received an allocation.
UBS, the Swiss banking power house will be suing the exchange for losses incurred as a result of the alleged mishandling of this issue. ($350 mln?) Apparently greed has little respect for greed.