Another busy day so I have to keep this very short as I am trying to squeeze this in between meetings. In general, the sector seems to be doing fine and modestly outperforming the market. It remains to be seen if this is a sustainable move or whether it is a bounce from new M&A […]
April 21 Biotech Update
A lot of news to cover and I want to get to it all, so maybe a little less detail and more topics today and I will circle back to the ideas over the next couple of days. In general, the sector is doing well with the deal flow news but I will talk more […]
April 17 Biotech Update
The sector is certainly weak to start the day and obviously this seems driven by the macro. It was not immediately clear to me the trigger for the selling. Was it renewed concerns over a Grexit? You would think by now investors are prepared for that potential and/or have been immunized by these repeated concerns. […]
April 15 Biotech Update
It is a busy day so I am going to try and keep this short but every time I write that it seems like I write the same amount if not more than usual. The sector basically looks in-line with the broader markets and large caps actually seem to be participating in the move higher, […]
April 14 Biotech Update
A weak start to the day that essentially appears to be a continuation from the late selling yesterday. It still seems to be the case that large caps are underperforming the SMID, which has been the case for awhile. I suspect that is going to be a difficult trend to break but for the long […]
April 13 Biotech Update
Happy merger Monday- well, happy Monday at least. The sector is off to a good start this week despite another dearth of deals this morning. It does worry me a little that the current expectation is that we will see mergers every Monday as the sector should ideally move on fundamentals and not quick merger […]
April 10 Biotech Update
A good opening to the sector and large caps but the move was almost immediately faded (especially the large caps). Yesterday ended better than the past, so perhaps the sector can recover and regain the lost ground but I still worry about this pattern of strong openings that are continually sold throughout the day. It […]
April 9th Biotech Update
The market is choppy this morning so it is difficult to read anything into the price action. I am growing slightly more constructive on the near term of the sector but that is a very low conviction view. While the sector bounced on support, I have a hard time believing that the sell off was […]
April 8 Biotech Update
It was actually a good morning for the sector with large and SMID caps doing well. While that is a good first step, we need these moves to not only stick but strengthen at the end of the day. Another fade would indicate that the selling pressure remains a headwind. The sector is in an […]
April 6 Biotech Update
I have not had a chance to follow the market last week, so I do not really have a sense how the sector is doing. It looks like it has been more of the same with weakness and large caps trudging along and unable to generate any real leadership. The sector is certainly lagging the […]
March 31 Biotech Update
The sector was relatively weak yesterday and did not start this morning particular strong. I still am noticing the large cap lagging trend that has been going on for awhile. Is this simply a function of the lack of near term catalysts, increasing bearishness on the large caps, investors chasing returns lower on the capital […]
March 30 Biotech Update
It looks like we have all survived the great biotech sell off of 2015. To be honest, I am not sure this really counts as a sell off (yet). We have been spoiled by the steady march higher and while this is a nice bounce, we were also very oversold in the short term. Add […]
March 27 Biotech Update
The sector is in bounce mode. While I certainly think there is room for a rally after the sharp selling, I would not read this as an all clear. Yes, the downdraft took some of the overvalued names down pretty far but this seems too orderly and easy for it to be done. Obviously, we […]
March 25 Biotech Update
A rough start to morning for the sector with a biotech bubble article in the WSJ not helping. There was nothing new but the headline is the headline (it also had some odd numbers like CELG P/E over 50, which is much higher than the numbers I usually see when calculating CELG P/E). Of course, […]
March 24 Biotech Update
Today seems to be a slow day, so I will try and keep it short and to the point. The sector held up better than I would have thought yesterday, although it was a clear underperformer. What seemed a little odd was that it was not GILD or BIIB leading the large caps lowers but […]
March 23 Biotech Update
A weak start to the week but it is also a continuation from the weak ending of last week. Everyone is waiting for a pullback. The bulls expect a moderate pullback to consolidate the move, the bears expect a more significant move to purge a lot of the excess valuation, and the bubble callers are […]
March 20 Biotech Update
I believe there was some sort of data that came out today that had people talking. LOL. The BIIB data neatly dovetailed into biotech valuation discussion and so I want to spend time talking about both the BIIB data and valuations. I want to try and separate them as while they are clearly linked, they […]
March 18 Biotech Update
Some early weakness but I also suspect today is going to be fairly volatile with the Fed weighing in later this afternoon. So I am really not going to read anything into the price action this morning and even less into the price action in the sector after the announcement. Given how close people think […]
March 17 Biotech Update
The market is weak but the biotech sector is showing good strength. The large caps seem to be holding up their end of the bargain, which bodes well for this move. I do wonder when the new leg down in oil prices hits the broader market. It seems to be handling it well but if […]
March 16 Biotech Update
A good start to the week with a new all-time high in the IBB but I still want to see how the large caps perform in the afternoon. The pattern seems to be early strength followed by weakness in the afternoon but maybe this time is different. Of course, SMIDs seem to have strength early […]
