Update-3 on JY 11 We will offer 3 updates in coming days: Healthcare Model, Large Cap Biopharma and Small/mid caps. Here are some notes on today’s market action:
Momentum appears to be ebbing on profit taking.A bit of sector rotation into energy today with XLE up 3.44% to $77.88. New MO movers: DNA, ROIV
- Least volatile stocks on our list: CRSP, CYRX, EVH; CCXI was acquired.
- XBI down 3% to $90.78, IBB down 1.3% to $131.29
- Large caps weak on political news: AMGN, AZN, GSK, REGN, RHHBY etc.
Update-2 1p EDT,Too volatile to trade?
Small cap speculative biotech stocks are crazy and volatile today. Weakness in chip stocks and NASDAQ has sparked profit taking in big gains. Weakest from our list below are:CRSP, CYRX, MRTX, VCYT. XBI down 4.54%. IWM weak. Large cap winners with IBB down 2%: AZN, BMY, MRK, RHHBY, VRTX. XLV flat at $139+.
Another Volatile day but the XBI holds at $93.89 up 1.72%, momentum continues.
- Mirati (MRTX) soars then drops back to$86.70 on high volume over 2.5m shares.
- Cryoport (CYRX) up 13.91%over 5 days with 91RS, despite Q2 loss and lag in revenues.
- Notable movers not on our focus list: DNA up 12.89% 5d ROIV up 7% over 5d
- Karuna Therapeutics. up 71.84% with schizophrenia drug Phase 3 study.
- Large caps may lag on drug pricing concerns but REGN up 2.77% to $630.63.
Small Cap Biotechs Perk-Up on deal making
- All of our July 5 Picks are doing well but CCXI is up 88%.
- As we have written many times the XBI is the momentum indicator for small cap strength.
- All of these picks are volatile.
We are just back from a two-week vacation so we’ll be playing catch-up for a week or so.But as you can see in the chart below most of our small cap biotech picks are doing well. The Amgen $4B deal for ChemoCentryx has provided near term catalyst for these small cap biopharmas. ChemoCentryx has a recently approved drug for a rare immune system disorder.
And yesterday a report emend saying Pfizer is planning to buy Global blood Therapeutics (GBT). for about $5B. We have recently turned bullish on more speculative small cap biotech stocks . With M&A picking up we would think smallerdeals make sense for large cap biopharma to expand pipelines and complement technology.
We have written about small and mid cap biotech trades recently so check previous articles.
Small Cap Life Science Picks as of JY 5
|7/5/22||8/6||$B||-000-||RATING||% MO.||% Week|
|FT NYSE Arca||FBT||149.25||5.66||6.5|
|SPDR S&P Bio||XBI||92.3||13.96||13.77|
|iShares Russell 2||IWM||190.8||10.4||1.9|