Following my last technical analysis “XBI – A Look At The Near and Long Term In The Biotech Sector” I will start adding names to our watch list with some beaten down tickers, we can find many deep value biotech stocks in the recent pullback, some are trading at or very close to their cash […]
February 12 Biotech Update
The market remains crazy and the sector is filled with odd moves. Yesterday seemed to be a good day of outperformance for the large caps and today they are red while the market is green. There were some good movers in SMID yesterday and today but not a real rhyme or reason for who outperforms […]
February 11 Biotech Update
The markets remain in turmoil despite a nice start (but poor finish) yesterday. Interestingly it seemed yesterday at least that large cap biotech outperformed the broader market. Obviously it could very easily be an oversold bounce but in a world of limited earnings growth, one could make the case that some of the large cap […]
February 10 Biotech Update
I am glad I was out of the office for the start of the week as the market took a drubbing. While today is certainly starting off better, this is still not a healthy market. I want to spend some time talking macro and then broadly about biotech and end with some specific company news. […]
Options Basics (4) – Options Strategies
So far, we discussed all the essential option characteristics. What an option is, its variables, and how to use options for risk adjustment. So now that you know these things, there are several “goto” strategies that take advantage of the flexibility of options. These are general strategies, and not specific to a trade. When […]
Dave-Trading – PFE
Pfizer Inc. (PFE)–NYSE *** David Sobek is a disciplined value investor. Using models, research, and fundamental data, David devises a value for biotech stocks, buys when significantly undervalued, and sells when significantly overvalued.*** Options are unfairly seen as risky, and many value investors avoid options out of fear. David Sobek appears to be […]
February 5 Biotech Update
The sector did OK during the pricing hearing but it was more of a mixed bag than across the board out- or under-performance. Today everything is down, so it is hard to see if there is any other effect from the hearing or the debate last night. We are still in a macro driven market […]
Options Basics (3) – Options variables and Greeks
We already discussed what an option is, and how it can help with risk management. When I was talking about risk management, I was talking about how options require a lot less margin to make the same amount of money on a stock. Why wouldn’t everyone do it then? In short, it is because there are […]
February 4 Biotech Update
Today is going to be an interesting day. Yes, there is the drug pricing testimony in Congress and that is simply a show and grandstanding that has no impact on the actual chances of changing policy. It will be good theater (unless you are already tired of seeing the same stories recycled everyday) but in […]
February 3 Biotech Update
The market remains tied to oil and while sentiment remains negative on oil it still has not made a new low. This is not to say that a new low is not coming but as long as it does not make a lower low, it is at least some positive for the market. Ultimately, we […]
GWPH: Is Epidiolex Nothing But Placebo?
GW Pharmaceuticals made the mistake of allowing expectations to exceed its abilities, forcing the company to announce a delay in the read-out of its pivotal Dravet study. Data originally anticipated for release at the end of 2015 has been pushed back a full quarter, leaving investors on their toes. This Dravet trial is the first of 2 studies […]
Cup O' Joe – SRPT AdCom
***Our trading analyst Joe Gantoss relies on knowing more, either through technical analysis & charts or DD & research.*** Thesis: Joe has done a lot of research on SRPT. Despite some FDA headwinds, he believes the AdCom will at least be moderately positive for SRPT. But there is some downside risk, so there is […]
Options Basics (2) – Options as a risk management tool
In the last article, I discussed the basics of options. What they are, their classification, properties, and the different types that exist. I also mentioned how options allow you to speculate on the most expensive stocks at the price of a penny stock. This can make the prudent investor uncomfortable, as penny stocks are […]
February 1 Biotech Update
Different week but the same market. There remains a bias to the downside, although perhaps an optimist can see a slight outperformance of the sector. At the very least, it seems like the sector is not leading the market lower. We got some news this morning but the key this week will continue to be […]
Options Basics (1) – What is an option?
First day of trading options in 1973 at the CBOE – Picture from CBOE.com In […]
GILD – Heavy Options Activity
Gilead Sciences Inc. (GILD) –Nasdaq GILD dropping hard after MRK receive the FDA approval for a less expensive alternative to Gilead’s hepatitis C drug and pricing it with more than 30% discount to the competitor drugs from Gilead and ABBV. We notices a huge Feb 19th call options activity, with over 25K of $89 Call […]
January 29 Biotech Update
It was obviously another bad day for the sector. The technicals look broken. The headlines are all about pricing. Buyers are on strike. There are no real exciting near term catalyst. Despite all of the negatives, there is some reason for hope at least over the medium term. 1. ISI had an impromptu call yesterday […]
January 28 Biotech Update
The market and sector did not like the FOMC decision or perhaps the wording of the decision. The sector remains in a precarious position. It has already fallen a lot but it remains at critical long term trend lines and if they break we could only be halfway through the decline. There was some talk […]
January 27 Biotech Update
The sector finally caught a break with the macro headwinds seeming to pause only to get sector specific headwinds with Donald Trump talking about drug pricing. It was not clear exactly what he meant as the numbers he threw around for the savings from Medicaid were more than the Medicaid yearly drug expense (keeping in […]
Sarepta: Is Eteplirsen Dead?
This was originally going to be titled “Ahead of the AdCom” but that no longers seems fitting. The highly anticipated Advisory Committee meeting originally scheduled for Friday January 22 was canceled due to blizzard conditions. Extremely negative reviews in Briefing documents [link] from the FDA are leading many to expect a denial for Eteplirsen’s drug […]
