Yesterday was a very bad day for biotech stocks. Celgene (NASDAQ:CELG), for example, fell over 4%, with a similar situation in other stocks in the sector. There was no real material news in the industry yesterday, certainly not enough to cause such a widespread dip. The only explanation is a broad market sell-off yesterday, which happened to knock down these companies more than others.
Because of this, I snapped up shares of both Celgene and Gilead Sciences (NASDAQ:GILD) at multi-month lows. I believe in both of these companies long-term, and today was simply a great entry point. They are undervalued considering long-term growth rates and I, despite losing money, actually liked it for the bargain prices on great stocks.
Disclosure: I am long CELG, GILD.