Update-3 JY 20…a good reversal day! Our healthcare portfolio strategy is working well even on volatile days.All major averages were up about 1.5% today and most biotechs did better.The XLV was up 1.2% to $128.82.We will post a new article at the end of the week.Some notable moves for today:

  • Our Quidel (QDEL) trade from last Friday worked from $120 to $136.94. Sold half.
  • Some laggard MO indicators perked up: ARKG, XBI.
  • Large caps strong holds: AZN, GILD,PFE etc.
  • Moderna (MRNA) reversal down 2% o $307 after hitting $342! Market cap $123B.
  • Green screen in mid-caps: ALNY, NTLA, RETA, RGNX, SRPT.

Update-2  7/16…Not much to report, looks like a risk-off situation. Small and mid- cap growth can’t  get traction. IWM down 1.23% to 214.95, IWC down 1.23%. ARKG up 0.6%, XBI flat, Buyers favor large caps with dividends and consumer staples not (reopening) industrials. Vaccines remain strong: BNTX,NVAX,MRNA. Medtech looks good.

  • Cryoport (CYRX) up 1.84% on an upgrade by BTIG.
  • Vericyte (VCYT) up 3.78% to $38.13.
  • Quidel (QDEL) looks like a good trade on technicals at $125.


Update-1 Market sells off ~0.35% to lows of the day.Concerns about inflation with CPI up 0.9% for the month. Small cap stocks were weak: IWM down 1.84% with multiple tops, IJR down 1.87%, IWC down 2%. Many biotech stocks are in these ETFs.

  • Biotech rally looks fragile with small and mid-caps.XBI down 1.67%.ARKG down 2.4%.
  • Coronavirus plays in the red but REGN up 0.52%.
  • Large caps held up nicely incl UNH.
  • Gene therapy stocks weak: CRSP, EDIT, NTLA.

Smaller cap spec stocks out of favor. 7/14/21



Vacation Last Week-Market Wrap …7/12/21

  • Record indices close at highs after a two day rally.
  • High expectations for upcoming earnings beginning with banks.
  • Biotech underperforming but Healthcare keeps pace with market.

Major markets did well last week through today with most indices at or near new highs. A slight dip last Thursday was bought on Friday. Skittishness was apparently caused by a drop in the Ten Year yield and concerns about growth. The Ten Year Treasury yield is now in the 1.36 % range. Performance of most major indices are near highs YTD with the S&P 500 and MidCap 400 up about 17% YTD. The DOW and NASDAQ trails slightly up about 14% YTD. Major bank earnings are on for tomorrow and should give clues to the strength of the economy. The XLF was up 1% to $37.10.

As the debate continues on allocation between growth and value, we believe in a balanced allocation of a  rolling rotation among sectors that is hard to predict. Biopharma has lagged while financials and energy lead. Technology remains a dominant core holding with the XLK up over 16% YTD. Last week was a bit choppy but real estate was  a leader up 2.64% as investors were buying REITS with interest rates near lows.

Here is an abbreviated summary of healthcare and biotech performance as of the July 12 close:

  • We believe in a core holding of large cap healthcare and biopharma stocks like UNH up 18.5% at $415, which can be viewed as defensive with modest growth.Our top picks in large cap Biopharma have been: ABBV, BMY, GILD, RHHBY and we own LLY PFE and REGN as well. The IBB is up 7.37% YTD well off February highs and a laggard.
  • As we have written before a lower risk model for a healthcare portfolio would be to buy the IBB and XLV up about 14% YTD at $128.95.
  • As you move out on the risk curve look at  two ETF trackers, the ARKG and the XBI which had been recovering off May lows but well off February highs. Both of these ETFs should be traded. Speculation has ebbed a bit.

During the past month we posted three long mid-cap life science ideas and here is a quick update. We are long all three .

Cryoport, Inc. (CYRX) is a life sciences services Company providing temperature controlled logistics solutions.Their Cryoportal is a cloud based platform enabling global management.The stock is up 16% over 3months to $60.07 but off recent highs of $66.75. Revenues are $122M and growing at 68% over five years. Analyst recommendation is a 1.6.

CRSPR Therapeutics (CRSP) is a gene editing Company focused on developing gene-based medicines for serious human diseases.The lead product candidate is  a CRSPR gene edited therapy for treating patients suffering from transfusion dependent beta thalassemia. The stocks is up 21.6% over 3 months but off recent highs of $161.89. Revenues are primarily R&D support from partners and the cash value per share is $23.76. Analyst recommendation is 2.1.

Veracyte, Inc.(VCYT) operates as a genomic diagnostic company focused on cytopathology results for ruling out unnecessary surgeries. The stock is down 25% over 3 months to $39.40. Revenues are 4123M and are growing at 18.9% over past five years. Analyst recommendation is 2.0.






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