There's no debating that this weekend's recall announcement from Affymax was terrible news. First and foremost, the adverse events that caused patient suffering, and even a few fatalities, is heartbreaking. Meanwhile, the value of the company is now roughly in line with the value of its cash on the balance sheet, implying that investors have little to no hope that Omontys will return to the market.
In the following video, Brenton Flynn provides some more details after listening in on the company's update this morning, and offers an opinion on what existing shareholders -- and those looking to profit from an overreaction -- might do in response.
There's no crystal ball
Some negative developments, like the Affymax news, are impossible to predict as an investor. So instead of trying to predict the impossible, try to invest in what you understand will work over the long term. The Motley Fool's free report "3 Stocks That Will Help You Retire Rich" names stocks that could help you build long-term wealth and retire well, along with some winning wealth-building strategies that every investor should be aware of. Click here now to keep reading.
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