Seeking Alpha

What biotech bubble?

  • In a surefire sign that, at least until a couple of weeks ago, irrational exuberance pervades the biotech sector American Gene Engineer Corporation files its S-1.
  • Selling shareholders offer 100M shares on the bulletin board. They will receive all proceeds.
  • Here are a few gems describing the firm's business (page 18):
  • The Company has been in the developmental stage since its inception and has conducted virtually no business operations.
  • The Company has no full-time employees and owns no real estate or personal property.
  • The Company was formed as a vehicle to pursue a business combination and has made no efforts to identify a possible business combination.
  • Egad.
Comments (4)
  • MEKhoury
    , contributor
    Comments (267) | Send Message
     
    Egad indeed
    31 Mar 2014, 04:45 PM Reply Like
  • mxkieran
    , contributor
    Comments (18) | Send Message
     
    Sounds like "Wolf of Wall St"/"Boiler Room" stuff
    31 Mar 2014, 04:48 PM Reply Like
  • ericmcarter
    , contributor
    Comments (188) | Send Message
     
    From their LNKD profile...

     

    Founded in November, 2010
    Purpose: Reduce misdiagnosis, mistreatment and improve treatment efficiency
    Mission: Promote molecular medicine, terminate genetic disease and help people “Conquer Diseases”
    New molecular diagnosis business will be expanded to New York and Los Angeles in 2014. Develop Asian businesses by 3rd quarter and focus on the development of global business.
    31 Mar 2014, 04:49 PM Reply Like
  • anthonyk32792
    , contributor
    Comments (3) | Send Message
     
    Yeah but the blank check penny stock scam isn't indicative of any biotech bubble. Companies like that exist in other industries. The biotech bubble is about the (suspect) overvaluation. Mid cap pharmaceuticals face the pipeline while expectations grow at a faster rate than the lengthy process of preclinical and clinical trials. But I personally think it's justified - 20% of the North American demographic will have retired in the next 10 years so the demand is a guaranteed grower. If there is a correction margin, I'm going to guess it's not going to be as extreme as what a bubble implies
    31 Mar 2014, 10:52 PM Reply Like
DJIA (DIA) S&P 500 (SPY)
ETF Hub
ETF Screener: Search and filter by asset class, strategy, theme, performance, yield, and much more
ETF Performance: View ETF performance across key asset classes and investing themes
ETF Investing Guide: Learn how to build and manage a well-diversified, low cost ETF portfolio
ETF Selector: An explanation of how to select and use ETFs