Busted Biotech Stocks: Where Do We Go From Here?…Updates

4/17/18 Latest portfolio changes are working: CELG at $88, XBI at $84. all based on technicals.

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Busted Biotech Stocks Get No Help From the Overall Market 4/8 Update

  • XBI down 3% on 4/6 and BELOW SMA 20 AT $82.90.
  • Bellwether Mid-Caps red screen-two up stocks CLVS ICPT ; NKTR down 7.48% !
  • Incyte (INCY) crashed 23% Friday on failed melanoma IDO1 inhibitor drug study.
  • Large caps red screen; IBB down 3% at triple bottom.
  • NASDAQ down 2.28%.
  • Update on 4/9 with Futures up at 11 pm EDT.
  • Inverted Yield Curve on horizon?

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Busted Biotech Stocks:  What’s the Next Trade?

Rayno Life Science Portfolio Update: Needs Re-Balancing

Rayno Life Science Stocks had a good run until early March 2018 when most life science stocks were hit hard. With all the bad news from recent clinical data ABBV, ALKS and uncertainties from macro and policy issues (tariffs+ rising rates), the market does not care about Company fundamentals. Follow the technicals until we get an update from Q1 earnings. Our favorite ETF the NYSE Area Biotechnology Index (XBI) hovered just above support of $83 although it is still up 23.48% over 12 months. One of our top speculative picks bluebird bio (BLUE) hit a new high of before dropping 73 points to the $160 level!

Here are some trades to consider assuming technicals hold at the current levels:

  • Buy and hold for the long term, http://oceanadesigns.net/envira/betularie/ the worst 12 month Large Cap Biopharma performers assuming that a turnaround from clinical data or a deal will help them in 2018: Biogen, Inc. (BIIB) at $265, click here prednisone purchase canada Celgene Corp CELG) at $88 and Regeneron Pharmaceuticals (REGN) at $327. IBB bottoming process at $102 level.
  • Buy XBI at most recent technical support of $83-84 for a 2-3 point trade betting on a rally. Downside risk is to $80.
  • Hold for the long term Bristol-Myers Squibb Co.(BMY) at $62 and Gilead Sciences, Inc (GILD) at $74. Both pay dividends.
  • We want to add more speculative picks like bluebird bio, Inc. (BLUE) or Mid-Cap Stocks with deal potential in the coming weeks if the sector can find its ski legs.
  • Biotech stocks are really being hurt by overall negative market sentiment and a de-risking mentality rather than industry specific news.

Disclosure long: ABBV, BMY, CELG, FBIOX, GILD, RHHBY

Rayno Life Science Picks- Data from 4/3/18

Company Ticker Date Price Price ’17 Perf Price’18 12 mos DIV
Started 4/25 % 4/3 YTD
Rayno Picks
Abbvie ABBV 2/3/16 56.5 65.45 16 90.59 39.3 3.9
Amgen AMGN 9/12/16 172 165 -4 168.22 2.64 3
bluebird bio BLUE 2/3/16 43.75 88.1 103 160.45 81.2
Bristol-Myers BMY 2/16/16 61 54.2 -7.7 62.77 15.79 2.42
Foundation Med FMI 7/5/16 20.4 34 68 69.95 120.32
Hologic HOLX 12/20/16 40 44.4 10.1 36.78 -14.5
Gilead Sci GILD 2/3/16 85.8 67.3 -20.9 73.75 9.91 3.05
Roche ADR RHHBY 4/4/16 30.36 32.4 7.9 28.05 -12.55 3.87
COMPs
IBB* 6/29/16 250 296 18.4 102.9 6.09 1.45
FBIOX 202.34 217.46 9.27
XBI 1/31/17 64 70.7 9.4 84.35 23.48 trade
XLV 80.76 8.52
QQQ 135.13 157.26 18.87
*1/3 split

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