Buy And Hold Is The Key
Rayno Biopharmaceutical Portfolio Poised for Big Wins in 2017
Biotech stocks have stalled since hitting highs in early October with pronounced weakness (see Risks Rising) over the past two weeks. Some large caps took a big hit from disappointing earnings (AMGN, GILD) so this points out the need for a balanced diversified portfolio including ETFs. Today was another lackluster day in a mixed market but with major indices holding the 5-day level.
Our biopharmaceutical portfolio is designed for the longer term but we delete stock picks that no longer meets our criteria.
The Rayno Biopharmaceutical Portfolio has done very well in 2017 and here is a brief performance summary:
| Company | Ticker | Date | Price | Price | Perf | 11/6 | Perf % | |
| Started | 4/25 | % | P | YTD | ||||
| Abbvie | ABBV | 2/3/16 | 56.5 | 65.45 | 16 | 93 | 41.48 | |
| Amgen | AMGN | 9/12/16 | 172 | 165 | -4 | 170.8 | 16.8 | |
| Biogen | BIIB | 2/13/17 | 275 | 286.5 | 4.5 | 315.47 | 11.25 | |
| bluebird bio | BLUE | 2/3/16 | 43.75 | 88.1 | 103 | 144.75 | 134.6 | |
| Bristol Myers | BMY | 2/16/16 | 61 | 54.2 | -7.7 | 61.68 | 5.54 | |
| Foundation Med | FMI | 7/5/16 | 20.4 | 34 | 68 | 54.35 | 207 | |
| Gilead Sciences | GILD | 2/3/16 | 85.8 | 67.3 | -20.9 | 72.38 | 1 | |
| Roche ADR | RHHBY | 4/4/16 | 30.36 | 32.4 | 7.9 | 29.22 | 2.4 | |
| IBB | 6/29/16 | 250 | 296 | 18.4 | 315.6 | 18.9 | ||
| XBI | 1/31/17 | 64 | 70.7 | 9.4 | 85 | 43.66 | ||
| QQQ (reference) | n/a | 135.13 | n/a | 153.79 | 29.8 | |||
|
FBIOX (reference)
|
220 | 27.25 |
Some key points on Rayno Portfolio performance:
- Top winners are more speculative stocks Foundation Medicine (FMI) up 207%and bluebird bio (BLUE) up 134% and smaller cap driven XBI up 43.66%.
- XBI is our preferred trade for overweighting. We sold near $87 as the stock pulled back from $89 but has since recovered to the $85 level.
- Our large cap winner was Abbvie (ABBV) close to its all-time high of $93.58 with strong earnings driven by Humira.
- Gilead Sciences (GILD) made a huge recovery from the $65 level but fizzled on their earnings with disappointing top line growth.The Company recently bought Kite Pharma a leading CART-T drug developer.
- Rotation out of healthcare has also been a factor lately as technology and “FANG” stocks lead the market.
After the recent correction and anticipating a seasonally strong Q4, we bought Celgene (CELG) at $100 which was down from 2017 highs of about $145. If technicals hold we will ad CELG to our portfolio.
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