For the past 5 years iBio ($IBIO) stock has been on a gradual decline in stock price. The lastest run up from $0.30 to $2.50 happened just a few months ago. Is iBio poised for another run on coronavirus vaccines?
Just recently iBio has received a new CEO, Tom Isett with the sole purpose of correctly building the company and to beat the ‘hidden enemy’, the coronavirus COVID-19.
Inside investor circles it has now become a debate on whether you should buy in or not.
Should you Buy iBio stock?
The short answer is yes. Despite the horrible price swings and the If you’re in it for the long term it is a great investment to look at. If you had invested 5 years ago you would be down 90%. Luckily this may be a great time to set your buys, that is only if Tom Isett achieves his sole purpose.
There may still be room for it to go down before it goes up but there is a support at the $0.50-$0.88 range. If the price stays above $0.50 it should be good for the bulls.
Every Biotech Trade is Speculating
Biotech and pharmaceutical stocks have always been prone to headlines, it’s the nature of their business. This makes every trade a speculative one so IBIO stock here is not any different.
While every portfolio needs a few of these types, they are dangerous and should be relatively small, and this is especially true during this crisis period. This week stocks are rallying even in the face of millions of people filing for unemployment. If this continues enthusiasm then iBio stock could levitate in sympathy. So as long as they don’t produce disappointing results investors will stick with them this year. This is to emphasize that its future success on Wall Street depends solely on successes in the lab.
To that point there is concern among investors that iBio still carries the black mark from its Ebola headlines of 2014. The company paid a $2 million fine for a false claim lawsuit. This is a risk factor that is hard to ignore but since we labeled this as a potential speculative trade then it’s par for the course.
Speculation is all based on risk and this is what makes the stock so volatile. Again, it is important to stress the small size of the risk because if the spike comes it would be big enough to pay well. But conviction is low and if investors bet a lot on it then it would be pure gambling.
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