Biota Spikes on Swine Fear
I read this comment on a forum this morning:
anyone selling and if so why? if it hits my original price from a few years ago i’d be tempted. $1.82
This is a classic example of anchoring, which is one of the most wealth destructive behavioral problems in investing. The market does not care what you paid and nor should you. Though the poster is not alone and that is why price support and resistance is real and meaningful.
I guess I better join the mass hysteria and go buy an anti-viral mask or some Relenza. Though in reality it is more likely I’ll get killed on the road to the shops to buy the mask than by swine virus. Humans are terrified of what they have no control over and complacent about what they think they can control.
BTA.AX currently up $0.67 at $1.54, that’s a five bagger for my fortunate friend who bought at $0.31 a few months ago.
Funny take on Swine Flu by Jon Stewart
| The Daily Show With Jon Stewart | M – Th 11p / 10c | |||
| Snoutbreak ’09 – The Last 100 Days | ||||
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Maybe the guy who mentioned $1.82 knew wealth destructive behavioral problems in investing aren’t just “anchoring” (pointless to mention in a forum anyway) BUT a warning to others that the price hasn’t always been $0.31, and it’s not wise to think you’ve learnt it all by reading one biased article.
When you are aware of a previous $1.82 shareprice you soon discover that Biota shareprice has no correlation with anything you’d expect because GSK is the only company allowed to research, advertise, and increase production of Relenza, but GSK is busy sinking billions of dollars into researching, advertising, and increasing production of VACCINES, an ALTERNATIVE method of dealing with flu.
For example, when medical options to replace Tamiflu were being discussed GSK took the opportunity at every occasion to proclaim that GSK were spending $2 billion dollars on vaccines and Relenza.
“We have invested over $2 billion to expand flu vaccine manufacturing capacity and increase production of our antiviral Relenza.”
http://www.gsk.com/responsibility/preparing-for-pandemic-flu.htm
What GSK kept to themselves was that of the $2 billion, $1.8 billion is for VACCINES ONLY, leaving peanuts for Relenza
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