Jim Cramer Makes Mistakes Too

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.

Related articles

• 4 Rules for Trading Biotech Spec Stocks - CNBC (news.google.com)
• F.D.A. Rejects New Diabetes Drug (prescriptions.blogs.nytimes.com)
• Amylin, Alkermes Once-Weekly Diabetes Drug Fails to Win FDA Approval (xconomy.com)

Exact Sciences Anticipating Oct. 29th Results

Image by Christiana Care via Flickr Exact Sciences has been on fire lately.  I do think that the stock will dilute in the next few weeks but I could be wrong.  They will need to recoup some of their capital from their clinical trials debt that they have accrued.  Exact Sciences is a very explosive stock that could really go higher than expected.  Who Knows?  I really like the options for Exact Sciences growth in 2011 and beyond.  In 3 Months Exact has gone from  3.46 to 8.88, a gain of 158.89%.    I expect it to drop down a bit and would suggest any future purchase of shares to come down a bit with a Limit Order.  Buy Exact at  some form discount at these very hyped up increased levels.  But they might not come down and you should buy some at the current Market Price. 

Wikinvest---Exact Sciences (EXAS)

Google Finance--Exact Sciences (EXAS)


Biotech Stock Mailbag: Exact Sciences

BOSTON (TheStreet) -- Did you catch Jim Cramer's excellent Mad Money segment Wednesday on Exact Sciences(EXAS_)?

If not, a question from Paul P. on the colon cancer diagnostic stock kicks off this week's Biotech Stock Mailbag: "Have you followed and/or have any thoughts on Exact Sciences? I've been following it and am hearing that it may be overhyped. Your thoughts would be appreciated."