2/28 10:15a XBI down to $86 level. Looking today to see what to buy. Bought VCYT yesterday at $23+
GNMK up 39% to $5 handle. Diagnostic and tools sector could be the place to look for buys but stocks are extremely volatile—-but now one hour later up only 20%!!
2/27 1 P EST Reversal and Rally Underway, TDOC up 24% to $145, GKOS up 3%. But wild intraday swings. Look for bottom in XBI at $90.
2/24 Update at close; A big sell-off on coronavirus pandemic fears with major indices down about 3%.
Teledoc Health (TDOC) up 0.66% to $114.26. Our top pick from JPM 2019.
Biopharma winners: GILD up 4.6%, REGN up 5.5% on safety concerns with Novartis drug.
MRNA up 2.2%- Phase 1 study for novel mRNA coronavirus vaccine to begin.
Biotech Stocks Mixed on a Down Day with the NAZ Down 1.79% but off the lows.
Coronavirus Fears Weigh on Stocks and Global growth–Macro risk is back.
Energy, airline and technology stocks were hit hardest.
The market took a hit largely attributed to growing concerns about the economic fall-out from coronavirus. Conferences are being canceled and travel is being postponed as virus cases outside China grow, now at 1200, raise fears of a global epidemic. Worse case scenarios of a pandemic and its impact on World GDP are getting attention. The contagion has spread with cases now in Italy even Iran.
Investors sought safety with gold climbing to a seven-year high of 1662, ( 1am NY time Monday ). and the Ten Year Treasury Yield reaching 1.47 % with some analysts saying 1.3% is possible; the 30 Year Treasury hit an all time low yield of 1.91%! Tech stocks were the biggest losers but the healthcare sector did alright with the XLV up 0.1% to $103.47. TheTechnology Select SPDR (XLK) was down 2.4% to the $99 handle.
Charts from finviz.com
Biotech stocks were mixed but outperformed the market perhaps on the belief that they have the potential of a cure with antiviral therapies and vaccines. Cramer on CNBC this AM was concerned that the supply chain of the pharmaceutical industry could be disrupted because of extensive drug manufacturing in China. There was also talk about drug pricing reform this week with both DEMS and select Republicans calling for legislation to lower drug prices.The IBB was down only 0.19% to $123.and the XBI was down 0.62% to $97.20 both still near their recent tops.
Here is a brief scoreboard of various biopharma movers among the stocks we track:
Large caps: Giilead Sciences (GILD) was up 4% to $69.70, Regeneron (REGN) was up 1% and others were in the green. GILD stock is in a uptrend and has a broad pipeline of products with unique expertise in antiviral therapies.The P/S for the stock is 3.93 with a forward PE of 10.94; the dividend is 3.93%.
Mid-caps: Mid-caps were mixd but we would look at this group for new buys. NBIX and ICPT were in the green but Biomarin (BMRN) soared 6.13% on news that its biologics application license for treatment of hemophilia was accepted for priority review.The Biomarin gene therapy product would be the first treatment for any type of hemophilia.
Buyers were scarce on Friday so it is very difficult to pick out sector trends from a general sell-off. The bond low yields portends the uncertainty of markets.
Disclosure : long FBIOX GILD MRNA TDOC