Image by Michael McDonough via FlickrJim Cramer apologizes for his mistakes. Jim Cramer isn't always right on his calls so just take that in mind when you watch Mad Money. But the guy is entertaining And sometimes he is right and sometimes he is wrong. I too didn't see this decision by the FDA happening and apologize myself but I only liked Alkermes as a trade and still think it is a buy right now. Alkermes symbol ALKS. Eli Lilly (LLY) also posted strong 3Q earnings and was up Friday.
4 Rules for Trading Biotech Spec Stocks
Two stocks that Cramer recommended last Thursday, Oct. 14 got crushed this week after an expected Food & Drug Administration approval never happened.
Everyone, including the “Mad Money” host, assumed regulators would bless a new diabetes medication being made by Amylin [AMLN 11.30 -0.18 (-1.57%) ] and Alkermes [ALKS 11.07 -0.03 (-0.27%) ]. But when the FDA on Tuesday requested more data rather than approving the drug, their share prices plummeted 50 percent and 30 percent, respectively.
So where did Cramer, and even the most negative of analysts, go wrong? What lessons has he learned from this week? He broke them down into four takeaways for any investors considering a little biotech speculation going forward. Watch the video 4 Rules For Trading Biotech for his full report.