Medarex acquisition ignites broad biotech rally

Bristol Myers announced Thursday that they will buy Medarex (MEDX) for $16/share or $2.1B a 90% premium over yesterdays’ market price of $8.40. Medarex is one of the leading biotech companies focused in human antibody development for use in a broad range of therapeutic areas such as cancer, autoimmune diseases and infectious diseases.The companies already […]

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Rally Update:Energy and metals lead the way

As of this writing two hours before the Friday close crude was above $63 up 3%. Since this rally began last week energy stocks have moved up in lockstep. Better than expected housing starts today have boosted the energy complex with volatile nat gas stocks such as KWK and SWN the biggest winners. Another good […]

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Broad market move up 2%+; Reflation trade back

The reflation trade caught some bids today with energy, precious metal, real estate, agricultural and industrial stocks all following the lead of the financials.Many of the energy stocks are near their intermediate lows so this could be a good entry point for the longer term.As examples COP, KWK and SWN have all bounced off their […]

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Rayno 2009 Biotechnology Portfolio-Mid Year Update

The Rayno Biopharm Portfolio is flat YTD. This compares to the broad-based ETF IBB which also flat YTD and the XBI which is down 5% YTD. Biotech in 2009 has significantly lagged the NASDAQ which is up 11%, however the S&P 500 is down 2.7% YTD. The Rayno portfolio consists of 24 stocks weighted by […]

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Reflation Trade kicks back: stay cautious

The gloomy job report has risk traders seeking cash. * The Dow,S&P and Nasdaq were all down 2.6% +. * Money flowed into the Dollar and US Treasuries as investors were seeking safety. * Precious metal stocks were down 3%; gold was down 1.25%. * The energy sector was hard hit as oil sold off […]

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Reflation trade turns cautious: 3% Market Sell-Off

The market had a broadbase sell-off today with weakness in all sectors especially commodity stocks such as energy and materials. The 30% rally since March 9th has come to a screeching halt. A global growth warning from the World bank gave a bleak report cutting estimates for 2009 from a 1.7% contraction to 2.9% contraction. […]

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H1N1 Flu Pandemic is here but Moderate in Severity

Drug Stocks rally on Flu News On Thursday June 11,the WHO raised its alert on swine flu (H1N1) to the Phase 6 pandemic level calling further spread of the virus inevitable. The Director- General of WHO Dr. Margaret Chan said, “Globally we have good reason to believe that this pandemic, at least in its early […]

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Ten Year Treasury Auction drives Yield to 3.99%

The reflation trade got a big boost from Treasuries today as the latest auction brought yields of close to 4%, much higher than the pricing of the May 9th delayed auction when yields were about 3.19%. The ongoing run on oil didn’t help matters as crude futures rose to $71.83 a rise of 1.84% a […]

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Reflation trade picks up after Auction

Auction Goes Well The Treasury sold $35 B of 5 Year Bonds at 2.32% higher than the last auction of 2.19% so analysts felt this was a good sign because it was the second strong auction in a row after yesterday’s 2 Year auction. Foreign investors now own more than half of the $6.35T Treasuries […]

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Perfect Storm of Financial Distress from BIO

BIOblog for GEN BIO Super Session Weathering the Perfect Storm of Financial Distress Rod Raynovich 5/20/09 At the end of this session someone in the audience asked, ”You described the Perfect Storm but didn’t tell us how to weather it?” Vaughn Kailian answered, ”Wrap yourself in cash.” But 135 public companies have less than one […]

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