The sector is just odd. If you look at the broader averages they have been pretty flat this week but under the surface there has been and continues to be massive moves. Everyday it seems like there is a new set off stocks up double digits and more double digits lower. After last week of […]
November 2 Biotech Update
I remain a little skeptical of the sector. We have had good news this week and while it has pushed those stocks higher, it had no impact on any other stock. The XBI and IBB were flat to down when you had a number of stocks in those indices up double digits. So while it […]
November 1 Biotech Update
The sector is doing well with the release of the ASH abstracts. There is not a ton to glean from the data but there are certainly some nice updates that we should follow to see what happens when we get the full presentations at ASH. In some ways, the more important driver of the sector […]
October 31 Biotech Update
The sector held onto some of the early gains but not a great finish. I read the retracement more related to broader market weakness on the fears of tax reform rather than an indictment of the bio bounce. Today will be important (assuming broader market is benign) to see whether the bounce has any chance […]
October 30 Biotech Update
It is a good start to the week for the sector but whether this is a dead cat bounce or something more meaning has yet to be determined. The selling has been pretty intense and likely overdone, so we were due for at least a bounce and we got through a morning without bad news. […]
October 27 Biotech Update
It has been an absolutely brutal earing season for the sector and for pretty good reason but you have also seen some babies being thrown out with the bathwater. Given the selling that has occurred, it is a natural reaction to assume these are buys or a bounce is coming but I prefer to sit […]
October 26 Biotech Update
A lot to discuss and I will do a couple quick hits and then focus on CELG as that seems the most fundamentally meaningful earnings report. This is going to take a couple days to really talk through all these reports but we will start with some high level points. 1. AMGN quarter was inline […]
October 25 Biotech Update
ALXN managed to hold onto its gains yesterday, which was a positive but the sector just feels heavy. I am not sure if this is simply related to nervousness over earnings plus the negative news last week or is it more macro related. The broader markets have been weakening and high volatility sectors like biotech […]
October 24 Biotech Update
This is the start of the wave of earnings and the sector is right at a critical support level. These earnings will determine (or most likely will determine) whether or not we bounce higher from this support for the next leg higher or break lower. So in some ways the reaction to the earnings is […]
October 23 Biotech Update
News will really start to pick up this week with a full set of earnings. There are a couple of interesting ones to watch but given how late we are in the year, the odds of a massive beat or miss are increasingly small. That being said there could still be some nice movers. 1. […]
October 13 Biotech Update
More of the same with winners drifting higher in the sector and losers drifting lower. I had hoped that volume and interest would have picked up this week but it is looking more and more like we will need earning season and the conferences to drive any sort of interest. Luckily both are fast approaching. […]
October 12 Biotech Update
Volume continues to be anemic but perhaps it will start to pick up into a series of conferences (world lung and SITC) and earnings. I say perhaps but it would be difficult for it not to pick up, so the real question is when the increase starts and perhaps the posting of the late breaking […]
October 11 Biotech Update
More of the same. The sector seems to be content to drift on low volume, which is pretty consistent with the broader market and the lack of fundamental news. Odds are this is the calm before the storm with the most likely set of news coming from earnings but even that should not be completely […]
October 10 Biotech Update
I was in my office yesterday to write but there is really nothing happening in the sector that is exceptionally newsworthy. I was hoping we would have some news today but it looks like we are in a bit of a lull. The good news is that it will not last too much longer as […]
October 6 Biotech Update
News continues to be a little slow but there are some companies that I want to follow up on given some discussions that have been percolating. In general, the sector continues to look good if not overstretched to the upside but as I noted before there is little reason to think that any pullback would […]
October 4 Biotech Update
We got some news to talk about today and it just so happens to be some good news and some bad news. In both cases, the news is specific enough to a stock that I doubt either would have broader implications, which means the sector will continue its longer term trend higher (with obvious peaks […]
October 2 Biotech Update
There is not a lot of sector specific news to start the week, although there seems to be some minor news. In these situations the sector tends to follow the broader market with a slight positive bias given that it remains in a bull market. I am a little surprised that there was not a […]
September 29 Biotech Update
The sector is off to a good start but it is a relatively slow news day but the news was certainly good. It will be interesting to see how the sector closes as given the recent strength we have not seen M&A buzz and rumors take off. That is an old bull market staple with […]
September 28 Biotech Update
The sector continues to grind along with a good day yesterday more or less signaling that the AXON news was taken as a stock specific event as opposed to a sector wide problem. That makes logical sense but is also something that occurs in bull markets. During the bio-bear market that would have crushed the […]
September 26 Biotech Update
We finally got the AXON news and it was pretty decisive. The question now is the impact that it will have on the broader sector. The hope is that enough negative expectations were baked into the stock that the broader impact will be minimal but we need to wait and see how it plays out. […]
