Investing in biotech stocks - My experience so far

BrockStoker

adindas said:

This is the Short sellers Game from CNBC. The recent example s GameStop Corp (GME)

https://www.youtube.com/watch?v=aZHTm0N59Rc

Yeah, been watching it unfolding today. I'm wondering if Cramer has been doing too much coke lately?!

From what I gather it's groups of bulls getting together to orchestrate short squeezes - I quite like the idea! Took out at least one cocky hedge fund which though it was being clever having massive short positions

BrockStoker

Took a bit of a punt today. 500 shares of Sorrento Theraputics @ $13.33.

https://finance.yahoo.com/quote/SRNE?p=SRNE

Seems like it has a very undervalued pipeline, especially after their recent phase 1 data. Possible short squeeze candidate, if more good data is presented.

Saving the best news for last, Tad on the YF ARWR message board posted a quote from a notice of annual stockholders meeting, which said that:

"Next Generation Weight: 8%
Meet certain goals for Company’s new capabilities
Met and exceeded
Achieved significant target knock down in new tissue type."

I'm surprised the share price is not up more (+1.2% at close) as it means hif2 or enac (or both) are working/surpassing expectations. Waiting for annalists to catch up again I guess!

Cus

It might be countered by the news that a legal firm is investigating a potential breach of fiduciary duty by Arrowhead.

BrockStoker

You could well be right Cus. Either way, fundamentally ARWR is stronger than ever. I'll likely be wishing I'd bought ARWR instead of SRNE in a few days time.. of course it's not about the short term.

Voyager2002

BrockStoker said:

Saving the best news for last, Tad on the YF ARWR message board posted a quote from a notice of annual stockholders meeting, which said that:

"Next Generation Weight: 8%
Meet certain goals for Company’s new capabilities
Met and exceeded
Achieved significant target knock down in new tissue type."

I'm surprised the share price is not up more (+1.2% at close) as it means hif2 or enac (or both) are working/surpassing expectations. Waiting for annalists to catch up again I guess!

I bought that morning (US time) at 78.20: close on Friday was 77.17. Let's see how much more I lose.

BrockStoker

Voyager2002 said:

BrockStoker said:

Saving the best news for last, Tad on the YF ARWR message board posted a quote from a notice of annual stockholders meeting, which said that:

"Next Generation Weight: 8%
Meet certain goals for Company’s new capabilities
Met and exceeded
Achieved significant target knock down in new tissue type."

I'm surprised the share price is not up more (+1.2% at close) as it means hif2 or enac (or both) are working/surpassing expectations. Waiting for annalists to catch up again I guess!

I bought that morning (US time) at 78.20: close on Friday was 77.17. Let's see how much more I lose.

It can be volatile in between news. If you can hold on for at least a few months (better yet years/a decade), I'm sure you'll have no regrets. Hoping for some news on or by 4 Feb (if not then, then it could still be a few weeks away - certainly by the end of Q2), so it shouldn't be long till we know which way ARWR is heading in the near term. I'd be very surprised if the news was not great, or good at the very least!

I'm still hoping for a dip in about a month's time so I can buy more, but I don't think it's a realistic possibility.

Foreverfinance

Have you ever looked into swing trading biotech companies who have upcoming FDA approvals? 
I ask because it appears as though you have an appetite for risk and this style of trading can be lucrative.
Of course, you're exposed to higher levels of risk, but it's something you can consider if that's your thing. 

BrockStoker

Foreverfinance said:

Have you ever looked into swing trading biotech companies who have upcoming FDA approvals? 
I ask because it appears as though you have an appetite for risk and this style of trading can be lucrative.
Of course, you're exposed to higher levels of risk, but it's something you can consider if that's your thing. 

I'm not sure exactly what swing trading entails, but I'm not totally averse to taking on a bit more risk with a small part of my portfolio of stocks. I'm considering opening an account with a more trading oriented platform anyway (for next year's allowance), as long as I can trade in an ISA wrapper, but I'm not sure if I'd want to be a regular trader. I'm a strong believer in the adage "the market is a mechanism for transferring wealth from the impatient to the patient", even more so after having sold a number of stocks just before they made major upward moves, so perhaps it may not be a bad thing to have a small trading portfolio to keep me occupied and hopefully less likely to mess with the core stocks which I want to hold for the long term!

BrockStoker

Others are catching on

https://twitter.com/truthtracer/status/1355605759719956481?s=21

BrockStoker

This was posted around a week back on the ARWR YH board by Partimefriend:

Invesco Global
Opportunities Fund•
Quarterly Performance
Commentary
Mutual Fund Retail Share Classes
Data as of Dec. 31, 2020
Positioning and outlook

+ We remain largely focused on investments in
companies with sizable, transformational growth
potential. Many are in relatively early stages of that
development. We like to be early, as the biggest
growth potential occurs in young, innovative
companies, not the old and established ones.

Contributors to performance

+ The three major individual contributors to absolute performance in the fourth quarter were Arrowhead
Pharmaceuticals, M3 and Exact Sciences.
+ Arrowhead Pharmaceuticals has an increasing number of product opportunities in its pipeline that can
commercialize its RNA interference intellectual property platform. RNA interference seeks to suppress or
turn off the action of disease-causing genes.

Top contributors % of total net assets

1.Arrowhead Pharmaceuticals 2.47
2. M3 3.05
3. Exact Sciences 2.84
4. Aston Martin Lagonda 1.52
5. AO World 1.21