I sold my Bind Therapeutics (BIND) stock today after it went up on the news that Pfizer will make an offer to buy its assets. The problem is that, as I read it, Pfizer won't buy the debts, and there will not be money for continuing operations once the debt is paid. The potential upside is that some other company will outbid Pfizer. This is within the Chapter 11 bankruptcy process. I think its technology should be worth more, especially given that it has several drugs using it that are being developed by large pharma companies that will owe substantial milestones and royalties if successful.
I lost money on Bind, so I am glad it only made up a small portion of my portfolio. I continue to own a number of small, risky biotechnology stocks. On the whole I have done well with this type of pick, but BIND now joins a small group of picks I took large % losses on, including DVIN and ANSV. And although I made money on DNDN by getting in early and then getting mostly out when it went high, in the end stockholders lost everything.
Reminder to myself and all: