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Alimera Sciences: Overbought?

|Includes:Alimera Sciences, Inc. (ALIM)

Alimera Sciences recently announced that the first patient was treated with Iluvien in Germany. This marks a significant milestone. They also announced the PDUFA date for Iluvien for October of this year. It took a few days, but the share price took off. It went up so much, that I believe it is over-extended and overbought for the current state of affairs. The recent share price appreciation prompted me to rethink my investment in $Alim. I sold my approx. 18000 shares at around $4.50. Don't get me wrong, I still believe Iluvien will do well and will eventually come to market in the United States, however, I feel fair value for the next month or two is around $3.70 - $4.10. Once we start to get some insight from the company on Iluvein sales in the EU and some guidance, the fair value will obviously change. I will be on the sidelines waiting for the next few weeks for the opportunity to re-enter. The market may not agree with me and I may never re-enter. Remember the higher it goes without any news or updates, the more those future announcements are "baked" in to the price.

I currently have no position in $ALIM.

Disclosure: I have no positions in any stocks mentioned, but may initiate a long position in ALIM over the next 72 hours.

Stocks: ALIM