Ever since the news came out about MITI, I've been secretly wondering whether this stock will become the next SQNM. MITI finished Friday solidly up in the week since its announcement.
Those looking for the SQNM breakdown waited for days for a shorting opportunity that never came. Meanwhile they missed out on a stock that moved from $9 to $22 in just a few weeks.
Most traders are cynical because that viewpoint usually proves the most accurate over a large number of predictions. Yet reflexive cynicism prevents traders from taking part in the most ideal play, the long breakout. What's worse is the automatic dismissal of all things biotech, when the traders have no idea of the science behind the news. The MITI news is based on this article in the top journal Science:
I've read the article and the science is actually pretty good. The scientists at MITI have found a way to induce cells called cytotoxic T lymphocytes to mount an immune response to cancer cells through the use of a specialized antibody. The publication of data like these in the most highly coveted scientific journal in the world in a rigorous if not downright cutthroat peer-reviewed process is a different matter than a fabricated press release and traders who cannot tell the difference may miscalculate the way to trade. Whether or not the stock holds up over the long term is a question only time can answer but don't be afraid to ever buy into the breakout of a biotech stock.
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2 comments:
A well written and interesting article! Thanks for this advice "whether or not the stock holds up over the long term is a question only time can answer but don't be afraid to ever buy into the breakout of a biotech stock".
Cheers,
dilimanrepublic
Nice post, Johnny. I'm a researcher in the field of healthcare myself, and I would agree with you that some traders don't understand the difference between fluff PR's and solid, no-BS scientific research. Science is a top level, highly respected journal.
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