So far what is clear is that Biotech is crashing. I am invested in CELG but I try to ask myself hard questions. Fundamentally I believe in CELG and at about 30% off its highs it offers decent value.
At the same time I force myself to justify a 49 PE and 36 times cash flow. Those are Morningstar numbers not mine and it strikes me that in the past investors switch to GAAP earnings decision making at times like these.
The truth is I wouldnt invest in CELG if I only focused on valuation metrics. I have a fundamental belief that CELG will be better in a few years than it is today. Better by the end of the year as well.
I'll go back to sleep now!