Wednesday, October 1, 2014

Why You Should Stay Away From the Ebola Frenzy in Biotech Stocks

NEW YORK (TheStreet) -- Ebola is here, so for daytraders of biotech and drug stocks, Wednesday is going to be their Best. Day. Ever. A guy traveling from Liberia to Dallas was diagnosed with the Ebola virus, we learned last night. Fortunately, the U.S. health care system is better equipped than West Africa to deal with contagious viruses, so virologists aren't overly concerned about the appearance of Ebola on our shores. But hey, there's money to be made trading stocks based on fear and headlines, so expect some crazy volatility today. I've written already about Tekmira Pharmaceuticals and its work on a legit, experimental Ebola therapy. Tekmira would prefer not to be pegged as an Ebola company, good luck with that request Wednesday. Tekmira shares are up 20% to $25.43.a Must Read: 7 Stocks Warren Buffett Is Selling in 2014 Sarepta Therapeutics is also working on an experimental Ebola therapy. Shares opened up 2% to $21.52. At this point, any drug stock even tangentially connected to Ebola is getting a lift. Let's run down the list: BioCryst Pharmaceuticalsa +3%, NewLink Genetics +9%, Hemispherx Biopharma +14%, Inovio Pharmaceuticals +2.5%, NanoViricides +9% and hazmat suit makeraLakeland Industries +11%. a Odds are better that I have a cure for Ebola in the back of my fridge than most of these do-nothing companies have for contributing something real to the fight against the virus; but traders need to eat, too. Must Read: Stocks Decline as Investors Remain in Wait-and-See Mode


Click to view a price quote on TKMR. Click to research the Drugs industry.





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