Update-1 JY/21…Small Cap Rally Intact especially with Speculative Stocks
Ok we got our nice small cap rally. Most of these stocks are somewhat isolated from macro and financials. But they need fresh news with pipeline updates.
- Mirati Therapeutics up over 15% this week.
- Modern holding up 5.6% for week to $169.
- XBI holding $84 level.
- EVH up 6.87% over 5 days pushing to $34 level.
- CryoPort (CYRX) nice bounce off JY 15 bottom to $37 handle.
- CRSP is cooling down but still up 23.63% for month.
Small Cap Biotechs Are Trending Well
- We are encouraged by the momentum in small cap biotechs and added positions.
- The XBI is still our favorite tracking ETF for momentum in biotech up 25% over 4 weeks.
- Our top small cap trades this month are CRSP and MRNA.
Despite a little weakness last week, small cap biotechs are trending well for traders. For investors entering the trade on July 5 all of our. focus stocks are up except ChemoCentryx (CCXI). Within our model healthcare portfolio we upped our small cap weighting from 5% to 10% using the XBI for tracking. The XBI is up 25% since July 5 .
A good comparison for stocks in this group is the well know ARK Genomic Revolution ETF (ARKG) which focuses so called “innovation” plays. Top picks are large and small cap biotechs such as : TDOC, EXAS, PACB and REGN.
ARKG at $36.37 is down 2.91% over one week and up 25.46% over one month.
Our small cap focus stocks vary in risk but all have good balance sheets and analyst coverage.The best picks in the group since we developed the portfolio on July 5 are:
Veracyte (VCYT) up over 48% over 4 weeks. innovative platform genomic cell classifier for cancer diagnostics.
CRISPR Therapeutics (CRSP) up 33 % over 4 weeks. Expecting clinical developments in gene editing for sickle cell disease , cancer and diabetes.
Moderna (MRNA) up 29.8 % over 4 weeks. Expectation of revenue growth from virus surge with new variants.
We are long all of these stocks and hope to update you when we make major re-balancing or sell-outs.
|7/5/22||7/16||$B||-000-||RATING||% MO.||% Week|
|FT NYSE Arca||FBT||140||10.57||-2.59|
|SPDR S&P Bio||XBI||82.37||25.41||-2.44|