Cyto Who?

By DrKSSMDPhD, January 21, 2016

[Ed. Note: Dr. KSS is an MD and PhD who writes about medicine and biotech stocks for the Irregulars. He has agreed to our trading restrictions, and his words and opinions are his own. You can see his past articles and recent comments here.]

You’re probably getting it right by now—writing “2016” and not “2015.” The poster child for January could be a black labrador retriever draped in soporific splendor over a cushion in front of a blazing woodstove in an old country store. It’s a contemplative month. What will the year bring? And will it treat us well?

And you could be forgiven if the answers seem to demand a swig of Mylanta. China enables a North Korean dweeb to both detonate nuclear weapons of his own and to facilitate missile construction by Iran. Meanwhile, Iran, temporarily on good behavior, will use its new treaty with Washington to intensify glut pricing for a commodity whose cheapness, if sense made sense, would be liberating economies, causing airlines, automakers and transportation industries to surge in share price. Investors, finding no quarter in either energy or commodities, ought to be scouring the exchanges for businesses that will soon generate profit, creating a seller’s market. As such, biotech should be facing rosy times, especially as political tea leaves begin to suggest that we might have both Robert Califf, MD, in charge of the FDA and Donald Trump in the White House…. a shoot-the-moon situation for biotech.

If you’re seeing a patient who is psychotic, who is clinically crazy, it doesn’t help much to delve into the substance of their craziness. There’s no value in parsing it, in trying to legitimate it, in trying to make it make sense. The first thing you do is try to restore order with antipsychotics. Rationality always returns—it does—and shall return to markets. The smart money is not brooding and languishing over the present climate of awfulness; it’s stalking good stocks, laying plans, staying calm, maintaining the posture of a puma. Maybe we all now need to be performing five-minute mini-affirmations of each other in the thread, just as Paul Giamatti’s wife does in the new Showtime series Billions. Here, I improvise: “Yes, those biotech stocks are just waiting for you to buy them just so that they can swandive 30 percent the minute your order is filled! C’mondo you really believe that? Is that RATIONAL?”

This morning, ...

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