Summary
Celgene dipped to multi-year lows of $70.
The major culprit was biotech sector weakness causing money to flow away.
The net payout yield has surged to 17%, providing a buy signal.
The good news for Celgene (CELG) is that a lot of the weakness in the stock over the last three months is related to general biotech sector weakness. The bad news is that the stock is still down 15% whether the fault of the company or not. Absent any evidence of company-specific issues, the stock dip is another opportunity to buy alongside a strong biotech.
Image Source: Celgene website
Market Weakness
A quick look at the S&P Biotech ETF (XBI) and one sees why Celgene was so weak during October. Even after the recent rally, the biotech ETF is still down nearly 11% over the last three months.
