Tuesday, October 16, 2007

Take profits in Biogen-Idec (BIIB)

The rumors of a buy out sent Biogen-Idec (BIIB) shares up about $13 dollars 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 today'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.

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