Pharmacyclics Shares Plunged: What You Need to Know

Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis.

What: Shares of Pharmacyclics (Nasdaq: PCYC  ) , a biotech specializing in small-molecule treatments for cancer and immune diseases, fell nearly 13% on more than double its average daily volume before closing down around 5%.

So what: Far as I can tell, no news precipitated the drop. So be it. Volatile biotechs are notoriously susceptible to broad market fears, and with Mr. Market howling at the rain as he has, some issues were bound to take a beating. Pharmacyclics just had its day.

Now what: Whether the selloff represents a buying opportunity is a matter of debate, but with insiders buying up shares recently, executives have a lot riding on a recovery. Betting alongside them might not be a bad idea. Do you agree? Disagree? Weigh in using the comments box below.

Interested in more info on Pharmacyclics?Add it to your watchlist.

Fool contributorTim Beyers is a member of theMotley Fool Rule Breakers stock-picking team. He didn’t own shares in any of the companies mentioned in this article at the time of publication. Check out Tim'sportfolio holdings andFoolish writings, or connect with him on Google+ or Twitter, where he goes by @milehighfool. You can also get his insightsdelivered directly to your RSS reader.

Try any of our Foolish newsletter servicesfree for 30 days. We Fools don't all hold the same opinions, but we all believe thatconsidering a diverse range of insights makes us better investors. The Motley Fool has adisclosure policy.


Read/Post Comments (1) | Recommend This Article (1)

Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

  • Report this Comment On August 05, 2011, at 1:51 PM, jehau wrote:

    Other than....1) the sharp run up to 13/sh in the last several months, including heavy put option buying; and 2) the current market correction....does anyone care to speculate on any other reason(s) for the 3 1/2 point drop in the past week? (I am an existing shareholder). - Jehau

Add your comment.

Sponsored Links

Leaked: Apple's Next Smart Device
(Warning, it may shock you)
The secret is out... experts are predicting 458 million of these types of devices will be sold per year. 1 hyper-growth company stands to rake in maximum profit - and it's NOT Apple. Show me Apple's new smart gizmo!

DocumentId: 1532674, ~/Articles/ArticleHandler.aspx, 10/21/2014 2:58:34 PM

Report This Comment

Use this area to report a comment that you believe is in violation of the community guidelines. Our team will review the entry and take any appropriate action.

Sending report...


Advertisement