Biotech may be turning around now

edited 30 November -1 at 1:00AM in Savings & Investments
32 replies 4.3K views
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  • BrockStokerBrockStoker Forumite
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    AnotherJoe wrote: »
    So for the avoidance of doubt, in case i read your post wrong, the top 9 stocks in your portfolio are in the one sector, Biotech?

    Correct. Around 25% of my combined investment portfolio is in the 3 healthcare/biotech funds that I mentioned. There is also a further 4% held in the Close FTSE techMARK fund, plus some added overlap from the more general funds I hold, so probably around 35% of my portfolio is in biotech/healthcare/tech. The rest I think is quite well balanced/diversified between energy/oil, Japanese small caps, India, and mostly value oriented UK funds.
    AnotherJoe wrote: »
    There was a time my portfolio was 100% tech (think Dell, Apple, Sandisk, Oracle and the like including some no longer with us) - Actually not Apple, unfortunately, or my butler would be typing this.

    I lost a six figure sum in the dot com crash in 3 or 4 months on that lot and similar

    Just needs a tweet from DJT to do that to these, at least in the short term. (though you might consider that a buying opportunity of course :D )

    100% tech would probably give me sleepless nights! Have you managed to re-coop your losses yet? I'm guessing that the biotech you've held over the last 5 years has helped a fair bit in that respect.

    I think that whilst there is a risk the biotech could go badly wrong at some point (for whatever reason), and it would significantly affect my portfolio, I'm not too worried about it as I still have at least 20 years left. Holding cash helps too. I'd be happy to buy into a crash as I think biotech will always have a bright future in the long term.

    Buying in dips has boosted my portfolio significantly so far, so I'm confident that with bigger dips and a long term investing horizon the effect should be amplified if anything. Obviously as I get closer to draw down I'd start to move into less volatile assets.
  • edited 1 February 2017 at 9:31PM
    AnotherJoeAnotherJoe Forumite
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    edited 1 February 2017 at 9:31PM
    Yep, Sandisk was a 20-bagger in the end so I'm well up now. Plus Apple, though I bought it a couple of years too late from when I "should" have bought it, and could have, doesn't even bear thinking about.

    Had Sandisk and Apple gone the other way I wouldn't be retiring this year.

    Apple I see a lot more upside, I think the iPhone 8 (maybe called the 10?) will be HUGE plus effortless almost pure profit on the App Store, and DJT incenting Apple amongst others to bring back a lot of profit from outside the US, to home territory. . Im forecasting Apple to be 2x by this time next year.
  • anotherjoe wrote: »
    yep, sandisk was a 20-bagger in the end so i'm well up now. Plus apple, though i bought it a couple of years too late from when i "should" have bought it, and could have, doesn't even bear thinking about.

    Had sandisk and apple gone the other way i wouldn't be retiring this year.

    Apple i see a lot more upside, i think the iphone 8 (maybe called the 10?) will be huge plus effortless almost pure profit on the app store, and djt inventing apple amongst others to bring back a lot of profit from outside the us, to home territory. . Im forecasting apple to be 2x by this time next year.


    ramper! :)
  • edited 1 February 2017 at 9:18PM
    BrockStokerBrockStoker Forumite
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    edited 1 February 2017 at 9:18PM
    Yeah, Apple and others are looking quite attractive now. I hope there's a dip soon so I can buy. Currently sizing up 2 tech funds - Fidelity and Polar Capital. I'm keen to invest in companies involved with IOT especially... it seems that could blow up in a big way.

    PS - looking like a strong close for biotech today, and I agree tomorrow could be great too with some biotechs reporting earnings for Q4.
  • AnotherJoeAnotherJoe Forumite
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    ramper! :)

    If only .... :D
  • AnotherJoeAnotherJoe Forumite
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    Check out AzN and GSk prices today (wed 1st), look at the chart. Very strange short but huge spike in both about an hour apart. Some big buys maybe?
  • BrockStokerBrockStoker Forumite
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    I'm guessing institutional investors taking an interest. My Henderson Opportunities Trust holding has been going up for no apparent reason (the NAV is flat in comparison) for a few weeks, excepting today when it finally went down a little, and I suspect institutional investors are also to blame.

    I keep hearing that there have been piles of cash waiting on the sidelines.
  • edited 5 February 2017 at 7:12PM
    BrockStokerBrockStoker Forumite
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    edited 5 February 2017 at 7:12PM
    Not a good start to today's trading session. Biogen Inc stock falling around 7%, and the other top 10 holdings of BIOG all in negative territory at last check. WWH seems to be doing better with stocks like Boston Scientific up thanks to reporting good earnings.

    Hopefully things will calm down later on...

    Edit to add: I didn't realize at the time, but Biogen "spun off" one of it's drugs, hence why it appeared to be falling, but it wasn't! So not such a bad end to the week after all.
  • BrockStokerBrockStoker Forumite
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    AnotherJoe wrote: »
    Check out AzN and GSk prices today (wed 1st), look at the chart. Very strange short but huge spike in both about an hour apart. Some big buys maybe?

    It seems that money is flowing from companies like Gilead to companies like GSk and Pfizer which look like safer bets under Trump:

    https://www.fool.com/investing/2017/02/02/ignore-gilead-sciences-inc-here-are-2-better-stock.aspx

    I guess AzN falls into the same category too.

    It also seems that the reason Biogen got hammered today (despite reporting more than adequate Q4 earnings), is due to ongoing pricing scrutiny. So biotech is not out of the woods yet it seems.
  • BrockStokerBrockStoker Forumite
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    So while it could be a rocky ride in the short term, there's reason to be bullish over the medium-long term:

    https://www.fool.com/investing/2017/02/05/trumps-plan-to-lower-drug-costs-is-a-fairy-tale.aspx
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