Changes to Model Portfolio
3/1/2000
Added:
FLMLY- French drug delivery and other stuff.
HMP- Med devices
SPGNA- biotech separations for LTAB who would have thought?
VVUS- As mentioned, specialty pharma for about 5 bucks.
PRXL- Premier CRO selling at crazy prices.
Harvested:
1K of ARIA
1K of CTIC
500 VYSI
All shares of AIMM
Mainly, I sold the above for cash to fund the new additions. CTIC has gone up a lot (since $2.50) so it was time. I think it's more than fully priced. ARIA, we still have a big amount in the portfolio and believe it may climb higher still. Same with VYSI, again big gains that can go to work for us elsewhere. AIMM, speculation that paid off well, but time to move on to new things.
Caveat: I have been very busy preparing for a new baby (a son) due in a few weeks. So I have not completed full DD on these but thought I'd throw them in. Sometimes (like LJLB, EPPH and yesterday FLMLY) they pop while I am in DD and are outta range before I can get them reviewed. So even more than always, do your own DD. SPGNA looks like fun, range of technologies and a nice patent estate, Revenues and earnings even. All for about a buck. I'll post some of their press releases, very matter of fact. Refreshing.
As usual be careful with orders, some of these are thinly traded. I may or may not have positions in these when you read this as I shamelessly churn my account although not the portfolio. The portfolio has beaten me pretty well with a buy and ignore strategy.
PRXL is a special situation. It is a CRO and service provider. Very high quality, got the S***t beat out of it today when Novartis cancelled a big clinical contract. Down 30-40%. So why buy in? OK, Novartis added that they like PRXL and there was nothing wrong. That fits with NVTSY doing window dressing on their research programs to show up on the NYSE as ADRs later next quarter. PRXL admit they will take a big earnings hit and said they would trim staff but they had talked about this previously to enhance "responsiveness" (e.g. profits). Now I only took a quick look but it looks to me that their current P/E is 10 and next year's earnings projection over a buck for a leading P/E of about 8. As I ranted elsewhere, I expect a LOT of the new biotech money to flow into CROs (just look at the all the Bioworld issues with articles about XYZ Corp raises ZZZ millions to fund clinical trials) and QTRN and PRXL are two of the top. Biotech HAS to get products to market and the only way I know (for drugs, devices and biologicals anyway) is via clincials. It may continue tanking tomorrow, in which case I will buy more for my personal account (aka the Biotech Rescue Fund) but probably not for SW since its a pain to update.
Here's the newly groomed Small Wonders
siliconinvestor.com
which is currentlu at $968,000 up 7% on the day and closing in on a megabuck. BTW notice its in all of $3500 in cash. Full steam ahead.
RWR |
