9/12/14 Contest update
This Friday I’m introducing a new feature: “Idiotic Biotech Stock Articles.” My pick for the week is from Zacks Equity Research, which is headlined: “Surging Earnings Estimates Signal Good News for Stemline Therapeutics”
STML, as it turns out, was the week’s top gainer among Contest portfolio stocks. But, given the sophistication of Contest participants, I doubt any of you bought STML based on the dopey Zacks article. The “surging earnings estimates” in the headline actually refers to revised estimates by two analysts who now believe STML will report a bit less of a loss for the current quarter and year than those same analysts previously modeled. So here Zack’s is being doubly dumb. Estimates of reduced losses somehow became “surging earnings” and since STML is an early-stage biotech, with no earnings expected for years, it’s nonsensical for Zack’s to focus on estimates of STML’s near-term earnings rather than the potential of its drug pipeline.
I imagine some of you have seen similar ridiculous articles from Zack’s as well as TheStreet, where an early-stage biotech’s current earnings are deemed more significant than its pipeline. It makes you wonder who is minding the store at these supposedly professional news organizations.
Feel free to post your own favorite examples of idiotic articles on biotechs, as well as any theories that explain why Zacks and TheStreet are so clueless about biotech stock valuation.
Meanwhile, at Friday’s close, the Contest median was up 7.37% YTD (vs. up 6.43% YTD a week ago), the Nasdaq Biotech Index was up 19.16% YTD (vs. up 19.5% YTD a week ago), while the Nasdaq Composite Index was up 9.36% YTD (vs. up 9.73% YTD a week ago).
DIEGO’s portfolio, up 69.13% YTD had a good week and bounced back into first place. DEWDIL’s’s portfolio, up 63.57% YTD, dropped to second place and WATCHIT’s portfolio, up 58.26% YTD, held on to third place.
At Friday's close, 30 of the 46 Contest portfolios are in the black, while 13 of the 46 are topping the NBI. The median Contest portfolio stock (SPPI) is down -6.67% YTD.
Below is the Top Ten list. Also below are the Top 5 & Bottom 5 Stocks ranked by % Gained and % Lost for the week. (Prices not converted to US$ in these Tables.)
Portfolio adjustments: None
(All corrections, especially adjustments for splits, greatly appreciated.)
Have a relaxed weekend biotechies!
Peace & good health,
Bulba
9/12/14
Rank Name Profit/Loss
1 DIEGO 69,125
2 DEWDIL 63,569
3 WATCHIT 58,257
4 DOUGH 46,398
5 STEVEL 43,308
6 GUERL 33,733
7 GHMM 33,538
8 JB118 32,245
9 ROCKY 29,425
10 PGO 28,130
Week's Top 5 Gainers
Symbol 9/5 9/12 Wk.%chg.
STML 10.63 14.05 32.17%
ECYT 6.60 8.58 30.00%
THLD 3.96 4.91 23.99%
HZNP 9.64 11.81 22.51%
NPSP 27.50 32.70 18.91%
Week's Worst 5 Losers
Symbol 9/5 9/12 Wk.%chg.
AMRN 1.94 1.49 -23.20%
KERX 17.01 14.34 -15.70%
CYTX 1.26 1.08 -14.29%
OREX 6.00 5.16 -14.00%
RPRX 16.76 14.52 -13.37% |
