Biotech Chronicles #1: The Survivor Business Model
Its the Business Concept and Science-Not the Numbers Think about it. Why do investors keep coming back to biotech? Why do VC's, hedge funds and traders like biotech? One reason is that it is not just dependent on fundamentals and financial metrics. Biotech thrives on medical news, scientific...
Rayno Life Science Portfolio Update: Cubist(CBST) and Viropharma (VPHM) Soar
Cubist(CBST) is up 5% today on heavy volume of 1.2M shares on no apparent news.52 week high is $25.48.On Monday the stock was $21.5. Maybe there is news on the TEVA lawsuit. CBST has a compelling valuation with ~$900M in cash and forecasted revenues of $688M, EPS of 34c/sh. with a market cap...
Rebalancing: Sell the Strong-Vertex(VRTX),Buy the Weak(Cephalon(CEPH)
Paired Trade Opportunity: Sell Vertex, Buy Cephalon Vertex (VRTX) is one of the hottest large cap biotech stocks based on FDA approval (May 23 review) of its lead drug candidate Telaprevir, an oral HCV protease inhibitor. The stock is off its highs of $52+in early March and is down 4% today at...
Rayno Life Science Portfolio: Dx and Tools Update: Caution
Speculative Small Cap Stocks Have Sold Off Since January 3 The Russell 2000 (IWM) was up 5% YTD but the index is down 2.3% today. The NASDAQ is down 2% as of 1:30p EST.Small Cap stocks have outperformed in 2011 so today's sell off may be a caution signal. Today's market downturn was triggered...
Rayno Biopharmaceutical Portfolio 2011 Up 1.75% Today
2011 Update It looks like the mini-correction is over. Many stocks in our model portfolio are up 5% and more since 12/31/10 but we are still below peak values of mid-January . Laggards are CEPH, MITI and NKTR. Look at doubling down on Cephalon (CEPH) which is at its five year low and priced at...