NMTI: Why the pullback?

[jeffblacktn]

I purchased NMTI long on 2/1/06 per Cramers bullish recommendation that it would go to $100.

As of noon today, the price has lost over $6.

Any thoughts on the pullback?

[Zsuzsa]

Just took a quick look at the news on yahoo (got to check the news if you've got to check the news for your investments), looks like two of their recent studies went KABOOM :(

Sorry, druggies are a gamble, I think you have to really look into them and follow up, not just buy on someone's speculation that the results of their studies will be positive.

[stockviper]

The studies fell short as they expected a 40% succes rate and only received 37%. Doesn't seem that far off to create a panicked selloff but the sheeple have spoken!

May be a good buying opportunity at a $5-6.00 discount and Cramer will probable have someone bring it up tonight on the lightning round.

[Zsuzsa]

yea, gotta read those studies when I get home, but I would like it if they have some alternatives on the study shelf and found something during the studies that would lead them to a more successful % treatment rate.

If they have other quality late stage studies on the shelf I would keep it around, but that's the way I have been playing these druggy research and so far it has worked out for me and panned out 8%, just based on common sense and what I know about studies...but I am pretty new to the whole investment thing so still testing the waters and studying how the market reacts to studies.

Good luck!

[zyzzyva57]

Usually, once a drug gets to this test phase, you have a good shot of winning--but as you have learned, it is not a guarantee. When Cramer pumps such a stock, be aware you are into a pure gamble if the $ucce$$ of the company depends on this drug. Cramer cannot really give you a date to monitor, because the test can be stopped early for failure. Too, a target date has to be guarded from competitors and insider trading charges by the SEC. I am studying the underpinning of "depo," because it has a drug in Phase III. It looks good, but-t I want to see how strong the company is if this test fails. I like a moot around my drug stock since I love the challenge of under $10 stocks. These stocks may be "cheap," but they do not need to be a "lucent."

[madcowdisease]

If you guys are looking for a safer - read, non-one-hit-wonder - look to Novartis Group [NVS]. They have a solid pipeline, regarded as the best in the industry. They have something like 50+ drugs in stage II, III or in registration. Even if only a couple of these hit it could be huge for the company. NVS isn't so corpulent like PFE or MRK that it can't grow. They've got a pair of BP drugs coming out along with a diabetes drug all due out by 2007. We know with as fat as this country is there's no shortage of diabetics and hypertension.

If past performance is any indicator of the future NVS already has a pair of blockbusters ($1 Bill. sales) and one of the drugs mentioned above is a Renin inhibitor and is a class all its own.

So if you want to steer clear of the tiny biotechs that are all or nothing and seek a little stabilty with good growth check out NVS.

[jeffblacktn]

What about NMTI?

Should I take my loss or just sit on what I have? I only have 10 shares in the damn thing.

I could sell what I have and buy a cup of coffee and some chocolate chip cookies with what's left I suppose.

Comments?

[zyzzyva57]

Cut your loses on any stock, so you can play again based on your knowledge from Hard Knock U. You have learned the perils of drug stocks. The previous post on NVS says it well regarding these stocks. I am a wannabe trader for the game of it. I will let my boring, but solid mutual fund handle the rock solid Best of Breed that forever ooooooooooooooze ever upward over the longgggggggg term. Learn Trailing Stops so you can dump quick on these newbie drug companies. Too, remember Cramer did warn about your drug stock as a pure gamble.

[Zsuzsa]

You probably have enough pocket change for that coffee and a donut or bagel, but if you sell yours I'll buy them from you :)

[Zsuzsa]

Cramer recommended, no wonder it's acting so crazy! Well I agree, lemme buy it from you and I'm sure it will come up in the lightning rounds at some point, especially since they have another clinical trial and already have a device on the market...roller coasters are cool and scary :)

[Zsuzsa]

It's up like .35...pre-market bastards getting in early on my bargain basement hunting! ;)

It's like going chopping on Black Friday...AFTER the employees have had a chance to raid the store!

[BOOOYAHOOO!]

I purchased NMTI long on 2/1/06 per Cramers bullish recommendation that it would go to $100.

Any thoughts on the pullback?


Yep, I think NMTI worked perfectly with the way things go 90% of the time Cramer says to buy something. It goes like this, a Cramer buy wreck-o-mendation leading to a dance of the idiots....a pullback to below where he said to buy in the first place.....Cramer idiots dump.That's where you are at right now. From here the scenario goes like this. An idiot will call in during a segment of the Lightening Yer Wallet Round of Cramer's Completely Insane Money and beitch an moan about da crappy call. Cramer will grab the painting of himself and blame the call on it. He'll push the DON'T BUY button. Within 2 days NMTI will begin to rally. Within a week it'll be at 21.00. Enter another idiot on da Lightening Yer Wallet Round who will axe about NMTI. Cramer will notice the rally and say BUY! BUY! BUY!. Stock will ramp on yet a second dance of the Cramer frenzied fools. Crash and burn within 2 days afterwards. Check it out with the fiber optic sector...Cramer is pumping those right now to a double top. Keep your eye on all of these, FNSR, MRVC, JDSU, AVNX, BWNG. They already had a pullback off the initial Cramer idiot pump. Now he is pumpin them to double tops. Check in 2 weeks to see where they are trading. *-)

[Zsuzsa]

isn't it fun to play when you know the "rules"?

[Zsuzsa]

is like watching a limbo contest...how low can you gooooo???