A Buyout Is No Certainty For Biogen-Idec

Rumors of a buyout sent Biogen Idec (BIIB) shares up about $13 to over $82 per share.

I first recommended BIIB last year at $44.6 based on the potential success of Tysabri in treating MS (link to that article). As of Tuesday's price, the stock is up 84% and I am recommending to sell and to take any profits as I believe a buyout is far from certain and any changes to these speculations will send the stock back down to $70.

Buying at these levels is definitely not recommended since the price is way too expensive based on fundamentals.

BIIB 1-yr chart:

Disclosure: The author does not have a position in BIIB at this time.

Comments

[borisb:]

good call. now what?

2007 Nov 22 08:27 PM