Traders -look for a turnaround in small cap biopharma and medtech today. NAZ at 7890.
5/10 1:30p EDT….Well we know now that even biotech stocks are not immune to tariffs. http://www.theyeardproject.org/42505-female-viagra-where-to-buy.html Risk off. Major ETFS IBB at 104.5 and XBI near 84 are at intermediate support and off lows for the week. But despite a bad week many small and mid-cap stocks have been doing well and today some green is emerging: BOLD ICPT MRNA NKTR SRPT VYGR XNCR. However the political chat against high drug http://www.bespokefurniture.net.au/97770-buy-clenbuterol-online.html prices are trashing large caps.
revitalize https://pablobeita.com/88816-elocon-ointment-price.html 5/7 2p EDT: Market Sells Off on Geopolitical Uncertainty -S&P Down 2%, NASDAQ Down 2.3%.
XBI Down 2.8% to $85-Previous Support Level
Remarkable Rally Monday after Trade War Talk.
Likelihood of Delayed Trade Talk Deadline but 25% Tariffs Still Coming on Friday
http://www.smartmedia.com.au/37864-clomid-canada.html 5/6/19 After close: Stocks steadily recovered after the opening today bringing the NASDAQ to 8123 down only 0.50%. Healthcare was in the green with the XLV up 0.51% to $90.62. Apparently more investors are coming to believe that “Medicare for All’ is a long shot politically and the demographics favor growth for medical services.Here is a snapshot of today’s action:
- ETFS: IBB up 0.85%, XBI up 1.68%, FBT up 0.29%.
- Medical providers took off after the drubbing of two weeks ago: IHF up 2.11%, UNH up 3.69%, THC up 6.26%.
- Gene therapy stocks were winners: CRSP, NTLA, VYGR etc.
- Mid caps were mixed with many winners.
- Large cap 1% + leaders: BIIB, REGN.
- REGENERON (REGN) earnings- Reports Tuesday am.
http://oroeast.com/95570-prograf-cost.html use Biotech Week Ending 5/4/19: Bit of a Rally But Still Down for the Week
Trump’s tweets rattle markets, risk off.
Large Caps rallied last week: BMY,GILD.
Biotech stocks survived a choppy week but ended up pretty much where they started at levels earlier in the week with the IBB at the $108 level below the 2019 triple top of $115. The good news is that the large caps survived Q1 earnings, and despite a reset on guidance, the bearish scenario triggered by the politics of ‘Medicare for All”. Likewise the XBI perked up to the $86 level on Friday but off the SMA 50 trend line near 89. Clearly biotech stocks need help from a strong NASDAQ considering the headwinds from a weak healthcare sector where the XLV momentum has been weak despite a reversal from the $86 level to $90. You will remember last June 2018 through July 2019 we had big moves in biotech stocks driven by ASCO Clinical news for immuno-oncology drugs. At this .time it is hard to imagine a similar huge move triggered by breakthrough therapies given the new drug pricing paradigm being sought by politicians. Here are some trends that could help drive the sector higher:
- Clinical data from CAR-T, gene therapy stocks still with big potential for cures.M
- More M&A deals expected.as well as licensing.
- Data from blockbuster drugs that can adress important diseases. e.g. NASH (nn-alchoholic steatohepatitis), cardiovascular, neurodegenerative.
- And of course FDA approvals for rare disease therapies .
Moreover as you review valuations post-earnings we could be reaching a level where large caps offer value plus growth because of attractive dividends. As we mentioned n our Large Cap Biopharma Wrap-Ups last week here are two large caps that offer value at present levels assuming their pipeline offers growth:
BMY: Price $48.60, P/S 3.52, Fw P/E 10.73, ROE 37.3%, Div. 3.37%. Celgene merger potential.
GILD: Price $67.13, P/S 3.90, Fw P/E 9.68, ROE 25.2, Div. 3.75%.
Heads Up: As of writing this blog the S&P Futures were down 1.74% because of the news that Trump is unhappy with the negotiations with China and will impose additional tariffs.on $200B of China goods. Trump tweets have become the new wild card for markets.