The_Unwind
Short

The Stock Market is a Very Risky Place

NASDAQ:BIIB   BIOGEN INC
Imagine a 63 Billion, that's a B as in Billion Market Cap stock
losing 29 % of it's market value, in one single trading day.

It happened today to Biogen , the biotec stock darling,
when the company withdrew further reasearch on it's highly touted Alzheimer's drug,
that was it's main drug in it's reserach and develpoment pipeline.

Line Break/ Chart shows the stock plunging thru all chart support in a single day
executing on a Head and Shoulder's Pattern that had been building for months.

As I have often said, the stock market is a much more risky place than most would even imagine.

In Biogen today, big money, and I mean big money, simply did not see this coming.

BIIG Last 226.88

THE_UNWIND
3/21/19
Mountains/New York

Imagine all who bought put options before the crash...I am sure they would have all retired by now :) :)

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Tesla withdrew their network AI for automated "ubers"... and nothing happened. yet.
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The problem is there's not a one-to-one correlation between money on the table and price. So a thinly traded environment (pre market, post market) can dramatically affect price without much money actually changing hands.
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@vergun,

Yes. Completely understood.

But this news happened overnight.
BIIG Closed yesterday at 320.Opened NYSE trading at 230 Down 90 from the previous close.
You do the math. How much money actually did exit the stock overnight ?
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vergun The_Unwind
@The_Unwind, Right, that's one of the oft misunderstood and unappreciated concepts of the financial markets. Thin trading volume could theoretically take a $50 Billion "market cap" company (as measured by shares outstanding * price), to $1 billion "market cap", despite there still being a net price of shares still held of $48 Billion, for example. The equivalent money paid for shares doesn't need to leave the stock for price to appreciate or deteriorate by any means.
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@vergun,

Ok. I understand the point you are making. Well taken.
However, I will stand by my underlying premise that the stock
is worth billions of dollars less today, than it was 48 hours ago.

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