The FDA fast track approval for the Emricasan drug is certainly a tremendous boost to the company and a very positive belief in the importance of company's drug development. But I do fear that overall, there is a lot of risk. This is one more healthcare/biotech stock that has performed poorly over the past year but has the occasional surge when there is good news about the company. Over the past year, the stock is down 67% and year to date it is down 34%. Currently 3 analyst opinions rate this stock a strong buy while 4 rate it a buy. If you are believer in the end product, the stock could surge, but the risks are very great.
Yoni, you certainly make some valid points here. Seeing the once invincible stock drop 28% year to date is somewhat worrying, but I dont think we've heard the last from this company. What is encouraging is the upgrade from Piper Jaffray this week (Feb 2nd) going from neutral to overweight with a price target of $122 (approximately a 33% in upside based on Tuesday's close). Jaffray shows that too win at stocks sometimes you have to go against the tide.
With Bogle's Vanguard funds offering mutual funds with some of the lowest fees in the market, its a wonder that more investment houses don't follow suite. The differences over the lifetime of a mutual fund with a fee of 0:05% vs 1% is staggering. And higher fees rarely have a correlation with better performance.
Its truly an incredible thing what effect the mere rumor of OPEC change in supply policy can have the the black stuff. How can one ever trust the value of something so vulnerable to the latest OPEC policy rumor? Some day perhaps there will be such a thing as an oil bank where you could store your oil and wait for the price to increase before trading it in a similar way to what the oil companies are doing by storing millions of gallons of oil in supertankers out at sea? For now, the average consumer uses oil as a source of energy and not as an investment tool, and probably sleeps better because of that!
Amazon has been a darling stock for a long time, but I am starting to wonder how much steam it has left. It seems that there is strong resistance at the $700 mark and the stock creeps close but never breaks that mark.In the last month AMZN is down around 11% and only up 13% for the year which would be good for any other stock but for Amazon is a definite slowdown. Earnings are out tomorrow and we'll be watching carefully to see market reaction. This month's analyst opinions are still bullish on the stock; 12 strong buys, 25 buys, 7 holds, 0 underperform, 0 sell. I think the stock is still too hot right now and would not buy yet until it drops to the low 500 area.
The type of huge swings in the markets like we are experiencing now only go to reiterate the need for investors to diversify. Investors need to diversify across different sectors, diversify between investment type; stocks, bonds, precious metals, real estate, cash, and diversify on investment area ie Europe vs US vs Asia etc. For an example of effective diversification across stocks, take a look at Berkshire Hathaway's portfolio. http://warrenbuffettstockportfolio.com/ He has 35% of his stocks in financial sector but is nicely spread across all sectors. Also interestingly, Buffett increased his investments in European stocks with the view that government stimulus over there is in the process of boosting the markets, we all might want to watch him carefully before we buy or sell. One thing is for sure, it is not advisable to sell on the lows and buy the upswing. Do you agree?
With this much volatility and no signs that things will calm down in the year ahead, what are your thoughts on VIX as an investment tool. In the past year VIX is up over 43% compared to the SPY which is down around 7%. Some obvious factors leading to massive swings in volatility include: the price of oil, US Fed rate changes, China's collapse, US elections, US dollar strength, mid-east volatility including Iran, Saudi Arabia and much more.
In my opinion, companies like TomTom and Garmin that produce mapping systems often used in GPS systems are going to see continued competition from mobile personal apps like Waze which enable people to have a mobile navigation system on their smart phones for free. GPS systems are going the way of CD players to be replaced by mobile app technology. Any thoughts?
Mannkind is one of those extremely volatile stocks that could make or break you, most likely the latter. It is now trading at around $0.83 and likely it will go bankrupt if I could hazard a guess. The company has been under investigation for SEC violations. As noted from "Business Wire", the investigation concerns whether the Company violated Sections 10(b) and 20(a) of the Securities Exchange Act of 1934. Specifically, the investigation will focus on the Company’s January 5, 2015 announcement that French pharmaceutical giant Sanofi will no longer market and distribute Afrezza.
Sarepta’s drug is an example of one of those supported by patients who desperately want a drug to be approved despite the fact that it doesn’t really work. The FDA is standing in their way and that is a big shame.
Latest Comments
Shares Of Conatus Up 22% On FDA Fast Track Designation For NASH Cirrhosis
The FDA fast track approval for the Emricasan drug is certainly a tremendous boost to the company and a very positive belief in the importance of company's drug development. But I do fear that overall, there is a lot of risk. This is one more healthcare/biotech stock that has performed poorly over the past year but has the occasional surge when there is good news about the company. Over the past year, the stock is down 67% and year to date it is down 34%. Currently 3 analyst opinions rate this stock a strong buy while 4 rate it a buy. If you are believer in the end product, the stock could surge, but the risks are very great.
Netflix: Valuations, Competition, And Questionable Accounting Point To Potential Crash
Yoni, you certainly make some valid points here. Seeing the once invincible stock drop 28% year to date is somewhat worrying, but I dont think we've heard the last from this company. What is encouraging is the upgrade from Piper Jaffray this week (Feb 2nd) going from neutral to overweight with a price target of $122 (approximately a 33% in upside based on Tuesday's close). Jaffray shows that too win at stocks sometimes you have to go against the tide.
Paying The Pied Piper Of Passivity
With Bogle's Vanguard funds offering mutual funds with some of the lowest fees in the market, its a wonder that more investment houses don't follow suite. The differences over the lifetime of a mutual fund with a fee of 0:05% vs 1% is staggering. And higher fees rarely have a correlation with better performance.
Why Oil Can’t Provide ‘Deep Value’
Its truly an incredible thing what effect the mere rumor of OPEC change in supply policy can have the the black stuff. How can one ever trust the value of something so vulnerable to the latest OPEC policy rumor? Some day perhaps there will be such a thing as an oil bank where you could store your oil and wait for the price to increase before trading it in a similar way to what the oil companies are doing by storing millions of gallons of oil in supertankers out at sea? For now, the average consumer uses oil as a source of energy and not as an investment tool, and probably sleeps better because of that!
Talking Numbers: Amazon
Amazon has been a darling stock for a long time, but I am starting to wonder how much steam it has left. It seems that there is strong resistance at the $700 mark and the stock creeps close but never breaks that mark.In the last month AMZN is down around 11% and only up 13% for the year which would be good for any other stock but for Amazon is a definite slowdown. Earnings are out tomorrow and we'll be watching carefully to see market reaction. This month's analyst opinions are still bullish on the stock; 12 strong buys, 25 buys, 7 holds, 0 underperform, 0 sell. I think the stock is still too hot right now and would not buy yet until it drops to the low 500 area.
4 Moments When "Stay The Course" Is Really Bad Investment Advice
The type of huge swings in the markets like we are experiencing now only go to reiterate the need for investors to diversify. Investors need to diversify across different sectors, diversify between investment type; stocks, bonds, precious metals, real estate, cash, and diversify on investment area ie Europe vs US vs Asia etc. For an example of effective diversification across stocks, take a look at Berkshire Hathaway's portfolio. http://warrenbuffettstockportfolio.com/ He has 35% of his stocks in financial sector but is nicely spread across all sectors. Also interestingly, Buffett increased his investments in European stocks with the view that government stimulus over there is in the process of boosting the markets, we all might want to watch him carefully before we buy or sell. One thing is for sure, it is not advisable to sell on the lows and buy the upswing. Do you agree?
The Daily Shot And Data - January 21, 2016
With this much volatility and no signs that things will calm down in the year ahead, what are your thoughts on VIX as an investment tool. In the past year VIX is up over 43% compared to the SPY which is down around 7%. Some obvious factors leading to massive swings in volatility include: the price of oil, US Fed rate changes, China's collapse, US elections, US dollar strength, mid-east volatility including Iran, Saudi Arabia and much more.
TomTom Should Look Outside Europe For Fleet Management Solutions
In my opinion, companies like TomTom and Garmin that produce mapping systems often used in GPS systems are going to see continued competition from mobile personal apps like Waze which enable people to have a mobile navigation system on their smart phones for free. GPS systems are going the way of CD players to be replaced by mobile app technology. Any thoughts?
Mannkind Creates License Agreement And Collaboration With Receptor Life Sciences
Mannkind is one of those extremely volatile stocks that could make or break you, most likely the latter. It is now trading at around $0.83 and likely it will go bankrupt if I could hazard a guess. The company has been under investigation for SEC violations. As noted from "Business Wire", the investigation concerns whether the Company violated Sections 10(b) and 20(a) of the Securities Exchange Act of 1934. Specifically, the investigation will focus on the Company’s January 5, 2015 announcement that French pharmaceutical giant Sanofi will no longer market and distribute Afrezza.
Shares Of Sarepta Tank 50% Ahead Of FDA Panel Advisory Meeting
Sarepta’s drug is an example of one of those supported by patients who desperately want a drug to be approved despite the fact that it doesn’t really work. The FDA is standing in their way and that is a big shame.