Votality in biotech/pharma tradingThe Globe and Mail reports in its Friday edition that wild trading swings in the first few months of 2021 are creating challenges for equity analysts, compelling some to quickly slap sell ratings on overvalued stocks or re-evaluate their modelling altogether. The Globe's Vanmala Subramaniam writes that this year's market turbulence was out of sync with even the historical performance of many stocks, said Rahul Sarugaser, a Toronto analyst at Raymond James, calls it being in an "irrational valuation environment." For example, in a Jan. 4 briefing to clients, he pointed out Profound Medical has tended to see its stock price spike sharply ahead of the annual J.P. Morgan Health Care Conference, and that the run-up could represent a "significant opportunity." This year, however, it was sharply amplified and lasted much longer, followed by a massive dip five weeks later. "What is driving a lot of the sentiment in the biotech sector is COVID-19 and people seeing the potential of companies that can deliver therapeutics or vaccines related to COVID," Mr. Sarugaser said. "But this has also spilled over into the broader biotech sector -- companies that have nothing to do with COVID are also seeing these massive value inflections."