Todays’ Movers : CSII and IMGN
Life Science and Drug stocks hit their third day of selling about 4% off July highs but 6% higher than June lows. The bellwether ETF IBB remains 6% above intermediate support of 100.The healthcare sector overall was down 0.88% about the same as the S&P. The weakest sectors were financials and industrials down about 1.45%. Large cap drugs continued to sell-off modestly between 0.5 to 1.2%.
The Rayno Index of 35 mid-cap biopharmaceutical stocks was mainly red down 1.6% .There was bottom fishing in former high flyer Amarin(AMRN $13.99) up 2.64%.Immunogen (IMGN $15.55) an antibody conjugate play with its TAP(targeted antibody payload technology) briefly hit a 52 week high at $16.20.The market cap is $1B compared to Seattle Genetics (SGEN) $2B.In January 2011 market caps were about the same. PDLI ($6.32) was up 1% on heavy volume. The stock pays a 9.6% (15 cent quarterly) dividend based on antibody humunization patents and royalty licenses. The stock can be volatile with a 3 mo. range of $5.7 to 6.6. This unique play may be worth a look in here.
The Rayno Life Science Portfolio was down 1%. Cardiovascular Systems (CSII $15.02) was up 4.74% on low volume of 93k shares. The stock was recently added to the Russell 2000.
The QQQ’s have outperformed the IBB over the past month 6.96% vs 4.46%.Over 3 months the performance is about equal. A good hedge might be to buy the QQQ’s which has large cap biotechnology companies positions, betting that biotechnology and drugs take the summer off and technology stocks outperform.