SELL ALERT: Agios Pharmaceuticals
9th October 2018 |
I have been monitoring Agios Pharmaceuticals closely and following the action we saw on Friday I believe the position should now be sold.
Agios has been drifting lower since testing the psychological $100 level in July and I have been willing to give it the benefit of the doubt as it reverted to the mean. It needed to push back above the trend mean last week, to demonstrate a return to demand dominance, but instead dropped to a new low.
This occurred against a background where there has been a dearth of new news from the company and the CEO is exercising options to buy more stock. However, the pullback in Sangamo Therapeutics is weighing on some of the immuno-oncology shares and I believe that this is one of the primary reasons for the recent weakness. It does not make sense to argue with the message being sent by the market and therefore Agios is now a sell.
The longer-term potential for immuno-oncology remains undiminished and I anticipate that the sector will return to performance over the coming months. When I see evidence of that happening I will make a fresh recommendation to buy into the sector.
Action to take: Sell Agios Pharmaceuticals
Ticker: AGIO
Price recommended at: $83.05
Last close (as at 08/10/2018): $69.01
All the best,
Eoin Treacy
Investment Director, Frontier Tech Investor
