Rayno Biopharma Portfolio Update: BLUE FMI IBB…Update-1

Update-1… 2/22/17

Dow closed at a record 20,775.6 with energy the big loser, healthcare down 0.19% and NASDAQ flattish.

Biotech stocks sold off with the IBB down 0.85% after hitting $296 near a 52 week high last Thursday. XBI was hit harder down 1.77% to $67.79. Large caps were mainly in the red except ALXN,BIIB and BMY. Mid-caps were a solid red across the screen with GW Pharmaceuticals (GWPH) down 3.29%.

Bristol Myers (BMY) stock popped yesterday after it was disclosed that Carl Icahn an activist investor took a position in the stock.

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Rayno Biopharma Portfolio 2016-2017

We have updated our biopharmaceuticals portfolio for the period ending February 17 2017. The biotech sector has been in a rally mode since the beginning of 2017 with major ETFs up 10.9% for the IBB and 17.3% for the XBI. We felt biotech stocks were severely depressed after BREXIT at the end of June 2016 and added the IBB. Large caps biopharma stocks have only begun to recover in 2017 after the 2016 earnings release. A summary of financial metrics for large cap biopharmaceuticals is provided here.

Here is a summary of key results:

  • The best performing stocks since inceptions were bluebird bio (BLUE), Foundation Medicine (FMI) and the IBB.
  • The worse performing stocks were GILD,BMY and RHHBY. All of these stocks yield dividends.
  • Small cap stocks are outperforming in 2017 because of a more speculative market and M&A.
  • bluebird bio (BLUE) is a volatile stock near its one year high of $80. The Company is focused in gene therapy for rare diseases.
  • Foundation Medicine (FMI) provides genomic information on cancer specimens to help direct clinical care.
  • Both Bristol Myers (BMY) and Gilead Sciences (GILD) have recently bounced off there 52 week lows.
  • New picks for 2017 are Biogen (BIIB) and XBI SPDR S&P Biotech ETF with an equal weighting of large and small cap stocks.

*Note: FBIOX is a good pick instead of IBB. Disclosure- long ABBV, BMY, FBIOX, FMI, GILD, RHHBY. XBI and BLUE are trades for now.

Company Ticker Date Price Price Perf YTD  DIV
Started 2/17 % %  4.14
Abbvie ABBV 2/3/16 56.5 61.77 9.3 -1.36
Amgen AMGN 9/12/16 172 173.29 0.7 18.5  2.65
Biogen BIIB 2/13/17 275 288.94 5 1.89
bluebird bio BLUE 2/3/16 43.75 77.1 76 25
Bristol Myers BMY 2/16/16 61 54.59 -10.5 -6.6  2.86
Foundation Med FMI 7/5/16 20.4 24.4 19.6 37.8
Gilead Sci GILD 2/3/16 85.8 69.85 -18.6 -2.46  2.98
Roche ADR RHHBY 4/4/16 30.36 30.53 0.05 7  3.34
IBB* 250 6/29/16 294.35 17.8 10.9
XBI 64 1/31/17 69.45 8.5 17.33

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2 Responses to Rayno Biopharma Portfolio Update: BLUE FMI IBB…Update-1

  1. Cathy February 21, 2017 at 3:12 pm #

    No fbiox?

  2. Raynovich Rod February 21, 2017 at 4:19 pm #

    Yes I have FBIOX but about the same as IBB

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