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Biotech Bombs, Suffers Worst Weekly Decline Since ’08

FYI: A rocky week for the broader stock market has inflicted serious damage to exchange-traded funds that track biotechnology stocks.
The $8 billion iShares Nasdaq Biotechnology ETF (IBB) fell 6.5% recent trading on Friday.

The ETF has fallen each day this week, bringing its total five-day decline to 14% — the biggest weekly drop since Oct. 2008, the height of the financial crisis.
Regards,
Ted
http://blogs.barrons.com/focusonfunds/2015/09/25/biotech-bombs-suffers-worst-weekly-decline-since-08/tab/print/

Comments

  • A pretty impressive and orderly deflation of the biotech bubble...at least to more reasonable levels.

    Will need to compile a possible shopping list for Monday.
  • When everyone makes the same bet, and there is a rush for the exit, it isn't pretty.
  • The bios with no earnings really got crushed. The entire group suffered though, as the ETFs brought the whole group down without discriminating.
  • let us know what's on your list, okay?
  • linter said:

    let us know what's on your list, okay?

    Celgene (CELG) and Gilead (GILD) are the primary two that I have as long-term holdings. Amgen (AMGN) is also worth a look at these levels. Celgene has basically given investors guidance out to 2020 and while it's not a major part of their revenue, Celgene is interesting from the standpoint of you have a biotech that basically is picking and choosing what it believes are compelling possible collaborations in a lot of the smaller (and some larger names.)

    Not an up-to-date chart, but gives an idea:

    image

    Guidance:

    image

    Gilead is now trading with a 10 p/e, so there's that (plus a massive buyback in place.)

    I do think you have to have a longer-term view for these names, because the second anything even remotely concerning is associated with a possible problem for the biotech industry, people just absolutely flee like no other sector in the market.
  • I might suggest adding REGN to GILD and CELG as cornerstone holdings in the biotech space. I will be adding to ETNHX as a basket.

    Not to be overlooked is a stock I've held for many years which is now available for what I consider to be a bargain price, and that's JNJ. And you get a growing divi which is currently 3.2%.
  • thanks, all!
  • edited September 2015
    PRESSmUP said:

    I might suggest adding REGN to GILD and CELG as cornerstone holdings in the biotech space. I will be adding to ETNHX as a basket.

    Not to be overlooked is a stock I've held for many years which is now available for what I consider to be a bargain price, and that's JNJ. And you get a growing divi which is currently 3.2%.

    REGN is an excellent choice, too. JNJ is down quite a bit, as is ABT. The latter - I think - is particularly penalized because of its significant EM exposure.
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