There is something that market is wrong about. The VIR and its blockbuster drug. This drug earns $1-1.5B per Q.
+ they are clinical stage company with Huuge innovative pipeline in HBV and HIV - treatments and VACCINES!
And market prices them like @#$! while they will earn around their own 1x market cap in 2022 and will sit with so much cash, that the current...
$IONQ style falling at the beginning of trading.
Yet the company has a great future and killed sentiment.
If we see recover here. it will shoot to 20+ in next 2 months, just like $IONQ did.
p.s. similarities do work.
Quantum computing space leader. Nice combination of:
- good quality company with 0 revenue and Multi Billion Market potential.
- options open interest + low float (exponential delta increase + gamma squeeze as many like)
- recent comparable companies did run from 10 to 40s ($ARQQ)
Bubbles are natural & good until everybody talks about it.
Didn't hear of anyone talking about it, so its a good time to make call - THE NEXT BUBBLE WILL BE IN BIOTECH (if we IGNORE EV and SPAC's ofcourse)
My bet is:
1. small cap bios could double-tripple from here.
2. heavy names could get +50%
Too much money, to few shares & good companies.
1) the moves are correspondent with VIX level, the implied volatility is huge. not a signal to runaway.
2) remember what happened during the last elections? related chart attached
now, as we do remember what happened back then there is quite possibility for history to repeat itself (no matter who wins, we will push up).
3) Algos should front run little bit as we...
This is not the end of the world. This is overbullish positioning, overreaction and a lot of calls had to be burnt.
Market had bad risk/reward, now it gives great risk/reward.
Buy tomorrow: 3050-3090 SPX, hold through choppy-chop and have your 10% a year performance.
Keep it simple.