Over the past few days I've been following some pharma bros over on twitter, some specifically mentioned by Martin Shkreli.
To say the least, their picks are somehow crazily good. If I did invest on their stock reports over the past few days, I'd be up around 135%. I'm talking about one stock that shot up to almost 100% after opening bell.
Why doesn't /biz/ trade on this type of shit? Is it all just pump and dump stuff or what? For example, on January 5th they were talking about $qure and next thing you know the stock shot up from $14.91 to $15.80 on the 6th.
These niggas are up to something. Martin Shkreli shouted them out on how good their analysis was, check. Martin Shkreli has a personal portfolio of around 45mil, check. He was given a raise by telling cramer's hedge fund to short a certain stock, check. This all seems to me that shkreli could've been using twitter to his advantage. Shit, one guy said that pharma company was hiding bad data in their phase III report and the stock shot down 15% out of the gates...
To say the least...
These niggas are up to something.
hmmm... Since pharma stocks seem to highly be based on news and reports, it seems like it's easy money.
It's a lot of pump and dumps, not necessarily done by the companies but by people on twitter and such getting companies hyped, then shorting them massively.
If you're going to play stocks like that it's all about reviewing the available information and being able to tell good info from bad. If somebody's hyping a stock, they're trying to get you to buy it. If they're bashing it, they're trying to get you to sell. But they'll only do that after they've established a position. So if you buy along with all the other followers after you see all the tweets, then they sell and take the profits and then everybody else sells and the stock crashes.
These stocks are heavily based on sentiment and news and often very irrational and manipulated, so you can be profitable but only if you are smart enough to go against the herd at the right time. It's fun to try but you'll probably lose like most people.
Without a doubt.
The real bitch is that most of the dogshit stocks being pumped are in the hard or impossible to borrow category, which makes riding them down correspondingly unlikely.
I've thought about this for some time.
So I'm going to just test the waters by viewing their picks and checking the way they go after the opening bell to see if there's any correlation.
Literally if anyone wants to get into this sort of thing, then just search just #JPM16
There's a huge BioPharma Convention being held right now that goes by the name JPM. All of the tweets dealing with that hash tag are probably pharma-bros.
I'm looking into attempting to quantify good and bad fundamentals from these companies, which is extremely hard since you're pretty much dealing with R&D and not companies with marketable products yet (most companies. The good ones already have a few drugs out on the market)
aye lad, good advice. Next time I see a bunch of media outlets spamming EVIL PFIZER'S LATEST DRUG IS DOING BADLY IN PHASE III TRIALS, it's probably a good indicator that stocks are gonna plummet a little bit for the benefit of speculators.
As a pharm student, Im gonna try to get balls deep in one of these big pharma companies and emulate these madmen. >>>:DDDDDDD
The media outlets reporting on them are only hitting the surface of major pharmas. Many pharmaceutical companies that are worth their salt can be bought out or funded by bigger pharmas. That's where the gains come into play.
It's just finding the reputable company that has a few medications already out and is developing a new drug for a niche problem that only affects a small percentage of the population. That way, it ensures less competition and raises the chances that the company will be bought out or heavily funded.
The hard part is meticulously picking through trial reports and understanding when they're bullshitting data. Supposedly, with just a limited amount of knowledge of the market, reporting faulty data along with raising drug prices to an exorbitant level are prevalent.
Multiple tweets posted on January 7th about some good news on Epigenomics AG (ETR:ECX) and that some were even posting about how they're going long and adding it to their "twitter portfolio".
Over the past five days the stock has risen by 110%
Look. No matter you analysis, company valuations are completely meaningless in the market. Nobody, literally nobody has a clue on how to value a company properly. Even motherfucking accountants can't keep track of all of a companies expenses and revenues at certain points. The whole sentiment of their Twitter account is to create liquidity for their account so they can bet against their advice. I honestly wouldn't be surprised if the SEC comes knocking soon.