u/Ok-Psychology7931

It's a matter of time when AI sector liquidity rotates to quality pharma. As soon as the major IPOs are gone (spacex, anthropic, openai), the AI--bubble cracks will be all over the place. That's when the rotation begins, and NVO, with its current insane undervaluation, will be the first to skyrocket.

And after the liquidity rotation to other sectors like pharma is done, u know what's next: RECESSION.

During the above liquidity rotation, expect NVO to easily reach its 200 WMA (currently sitting at 470dkk/70usd). During the forthcoming recession, expect a double bottom senario for NVO in the 300-200dkk range (depending on the recession's severity) and then, that's where the real journey to the upside begins (at least a double top ATH senario).

1. Technical reasons:

The move was over-extended (5 consecutive green weeks without corrections) and we hit a major resistance (47.4 usd) on a major donward trendline starting from June 2024. This downward trend has reached a huge compression point, nearly impossible to break without some correction. Healthy corrections are necessary and give strength to break upside resistances.

2. Some drama from total prescriptions decreased number.

3. Overall pessimism regarding novo nordisk stock, combined with wall street manipulation and Trump administration favoring Lilly (and punishing Denmark).

4. Overall market technically over-extended and about to correct. Markets are in the reds today.

5. Thin liquidity regarding Novo Nordisk stock (Danish stock market closed on holiday)

Most of you Novo shareholders are still overestimating Lilly and underestimating Novo.

And that's exactly why Lilly is so good at marketing and brainwashing. They managed to present their inferior products as superior to everyone, including you.

And the above stragedy paid off. Lilly, being the most expensive pharma in PE ratio and Novo, being a terrible pharma, which is treated as its about to go bankrupt.

Lilly could be effectively and wisely diversified, but in the field of diabetes and obesity, in GLP-1s and insulin, Lilly is not the sheriff in town, Novo is.

The game is not who is more efficient. The game is who is better at marketing.

Nevertheless, because Novo is not about to go bankrupt and because Lilly is not the best in GLP-1s, it's not a question of IF the market will correct the assymetry in market cap and PE ratio, its a question of WHEN.