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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.
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:
Guidance:
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%.
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.
Comments
Will need to compile a possible shopping list for Monday.
Not an up-to-date chart, but gives an idea:
Guidance:
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.
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%.