A follower asked for my opinion on this stock which he said many are shorting this and asks if he should be a contrarian instead.
I do not own this stock and has no intention to at this moment but just looking at the chart, here's my 2cents :
1) price has fallen by 70+% from the peak from June 2024 (more than 12 months of bearish moves)
2) price is still in the downward channel and no reversal pattern is in sight
3) How will Donald Trump's tariffs hit these pharma companies down the road remain a mystery. Prefer to let the dust settles first, ie. you may not catch at the lowest price but at least if the trend is up , you have participated in it.
4) Time Horizon - are you investing for long term ? If yes, then further fall in prices may be a good opportunity to average down.
5) Economic Moat - how intense is the competition in the obesity drugs market ? How are the other competitors doing ? Is Novo market shares being encroached ? if yes, what are its strategies to counter that ?
Reading some of the analysts' comments on this stock, it seems like short term prices may not recover as fast as many disappointed investors wanted. Further selling pressure may persists, creating more fear in the market. It may takes several years for the prices to recover to its glorious days so patience is really needed if you want to invest in it.
6) Substitutes - Are there better healthcare companies that you can choose to invest in compared to NOVO ? Consider your investing objectives, capital allocation, timeline, risk/reward, etc
No rush.....
I do not own this stock and has no intention to at this moment but just looking at the chart, here's my 2cents :
1) price has fallen by 70+% from the peak from June 2024 (more than 12 months of bearish moves)
2) price is still in the downward channel and no reversal pattern is in sight
3) How will Donald Trump's tariffs hit these pharma companies down the road remain a mystery. Prefer to let the dust settles first, ie. you may not catch at the lowest price but at least if the trend is up , you have participated in it.
4) Time Horizon - are you investing for long term ? If yes, then further fall in prices may be a good opportunity to average down.
5) Economic Moat - how intense is the competition in the obesity drugs market ? How are the other competitors doing ? Is Novo market shares being encroached ? if yes, what are its strategies to counter that ?
Reading some of the analysts' comments on this stock, it seems like short term prices may not recover as fast as many disappointed investors wanted. Further selling pressure may persists, creating more fear in the market. It may takes several years for the prices to recover to its glorious days so patience is really needed if you want to invest in it.
6) Substitutes - Are there better healthcare companies that you can choose to invest in compared to NOVO ? Consider your investing objectives, capital allocation, timeline, risk/reward, etc
No rush.....
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.