Here are some key points from our 2011 Biotech Stock Review posted in Investor Uprising:
Winners from the 2011 Rayno Life Science Portfolio:
Abaxis (ABAX), Alexion(ALXN), Amgen (AMGN), Biogen(BIIB), Bristol-Myers (BMY),Celera(acquired),Cephalon (acquired) Cubist (CBST), Exact Scientific (EXAS),Gilead (GILD), BioETF (IBB), Immucor (acquired), Neogen (NEOG), Regeneron (REGN),Quidel (QDEL), Seattle Genetics (SGEN), United Therapeutics(UTHR) and Viropharma (VPHM)
Losers: Alere (ALR), Illumina (ILMN), Nektar (NKTR)and Qiagen (QGEN).
- Build a portfolio of stocks including ETF’s; overweight large cap stocks.
- Do not speculate in single stocks unless you have a Ph.D in Molecular Biology or are a day trader.
- Be mindful of seasonality as Q4 and early Q1 tend to be strong.
- Review financial metrics especially balance sheet.
- Technicals are important and show accumulation and institutional support.
- Look for major trends such as M&A, targeted therapy and personalized medicine.
- Valuations are important in diagnostics/tools sector especially Price to Sales and sales growth.
We published a review of biotechnology stocks and trends for 2011-2012 in Investor Uprising today (12/28/11):