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 Dyax (NASDAQ: DYAX) lost 34% of their value today, falling off a cliff after first-quarter earnings came out.
So what: First-quarter net sales increased slightly from a year ago, to $12.0 million, but analysts expected $16.0 million in revenue, so this is a huge miss. It's no wonder that net loss of $11.2 million equates to $0.11 per share, more than double the $0.05 per share loss analysts expected.
Now what: The company is having trouble with its KALBITOR business, experiencing fewer new patients, and fewer treatments in the quarter. I'm not a fan of speculating on a company like this, especially when its flagship product isn't being well received by the market. I'd jump ship and wait until strong results come out to reevaluate the company, because there's no significant profit on the horizon.
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