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  • Guru Fund Managers Would Buy LinkedIn Shares Here. Should You?
    Editors' Pick • Fri, May. 9 FB, TWTR, LNKD 22 Comments

    Summary

    • LinkedIn shares have fallen aggressively, dropping 44% since the peak last year, far in excess of its peer Facebook's 22% drop, and more in line with Twitter's 56% drop.
    • While Facebook takes the cake in terms of valuation, LinkedIn shares are also attractive at current levels, especially given its position as the leading social networking site for professionals.
    • Based on an analysis of leading fund manager buying and selling activity over multiple quarters, and its fundamentals, we believe they would accumulate Facebook shares at current prices.
  • Endocyte Is A Steal At Current Prices, Appropriate For The Risk-Tolerant Investor
    Mon, May. 5 MRK, ECYT 12 Comments

    Summary

    • Endocyte and Merck shares traded down today after Endocyte announced that the independent DSMB recommended that the Phase 3 PROCEED trial of Vynfinit in platinum-resistant ovarian cancer (PROC) be stopped.
    • Endocyte shares are trading at near cash levels, discounting most possible negatives, and assigning no value to its pipeline or technology.
    • Leading fund managers, like many experts, added shares in the last few quarters, but their buying was tepid vs. other similar sized market-cap biotech's with mid- & late-stage product candidates.
    • We expect shares to rebound in the short-term to the $9-$10 resistance levels, especially on no more negative news, like they did after falling on last October's negative DSMB announcement.
  • Plug Power's Secondary A Net Positive, But There Are Other Issues To Lose Sleep Over
    Fri, Apr. 25 PLUG 36 Comments

    Summary

    • Plug Power shareholders feel betrayed by management as it announced a third offering this year, particularly due to its timing right after positive announcements from the company sent shares higher.
    • The offering is not unexpected, and can be viewed as a net positive. With $150 million in cash, Plug Power will not be making more dilutive offerings anytime soon.
    • Does the offering, however, signal that management believes cash flow positive is even further away than in FY 2015, as currently projected by analysts?
    • Long-term potential notwithstanding, this highlights our concerns about valuation, negative gross margins, and falling product revenue, among others. Also, Guru fund managers are bearish on Plug Power.
    • We would be buyers on any dip below $4, and technically the stock looks like it is going to break down below at least $6 very soon.
  • Can Endo's CEO Do An Encore Of His Playbook At Valeant? Guru Funds Think So.
    Wed, Apr. 23 ENDP, VRX Comment!

    Summary

    • Shares of Endo International are down huge in this correction, paralleling moves in many biotech stocks, but unlike the smaller corrections in many of its generic and specialty pharmaceutical peers.
    • Endo's fundamentals do not support its current share price, fueling bearish concerns that the stock is over-valued.
    • Bulls are speculating that Endo's new CEO, Rajiv De Silva, will do an encore of his playbook at Valeant, during which shares were up six-fold in three-plus years.
    • Guru funds have been aggressively buying Endo shares in the last three quarters since the new CEO took over, including in the latest quarter at prices averaging in high-$50s.
    • Endo shares are trading near levels at which these leading funds considered them an attractive buy, and can be bought on dips to and below the 200-day moving average.
  • Is There Any Power Left In Plug Power? Guru Funds Don't Think So.
    Mon, Apr. 21 PLUG 154 Comments

    Summary

    • Plug Power reported a string of positive news events this morning. The stock responded with a strong gap-up, only to close down about 5%.
    • Plug Power shares are up about 50-fold in the past year. While shares were attractive at $2 when we last wrote about it in January, they are over-valued now.
    • Leading funds sold about 50% of their position in 4Q '13, and hold only ~1.0% of outstanding shares. That in no uncertain terms conveys their bearishness on the outlook for Plug Power.
    • Do not short as there is high risk of loss. However, current shareholders should lighten up. And potential new shareholders can wait for a dip to below $4.
  • Could Guru Fund Managers Be Right On Apple Again?
    Thu, Apr. 17 AAPL 80 Comments

    Summary

    • Apple shares have gone nowhere for two years. Question for newer investors is whether this is consolidation before a rise up to highs, or if Apple's heyday days are over.
    • Apple's discount valuation and growth potential related to new product launches, especially in wearable tech, make it an attractive play, despite concerns about its waning competitive edge vs. androids.
    • Gurus and other leading fund managers are buying Apple again en-masse in the last two quarters, signaling their bullishness about appreciation from current price levels.
    • Leading fund managers correctly predicted Apple's fall from the $700 level two-years ago. Could they be right again? We think so, and believe upside to be $700 in 12-18 mos.
  • Is Imperva The Worst Name In Cyber-Security Or Has It Fallen A Bit Too Much?
    Fri, Apr. 11 FEYE, FTNT, PANW 11 Comments

    Summary

    • Yesterday Imperva reporting disappointing preliminary results for 4Q'13. Investors rushed out of it, dropping shares 43% yesterday, and about 60% below highs a month ago.
    • The cyber-security industry is experiencing long-term secular demand growth due to IP and data security threats from governments, criminals and hacktivists. Corporate spending will pick-up to match this threat.
    • While none of the cyber-security plays will appeal to value investors, growth and momentum investors may find opportunity here, particularly in Imperva and FireEye.
    • Shares have fallen a bit too much too quick, particularly on Imperva, and yesterday's action looks more like a wash-out, setting up for at least a quick technical rebound.
  • Buy Actavis - An Attractive Value And Growth Play That Is Also A Top Guru Fund Pick
    Thu, Apr. 10 FRX, MYL, PRGO 6 Comments

    Summary

    • Biotech investing is like a Casino. Generics offer a less manic alternative, with Actavis the poster child, attractive from both a value and growth perspective.
    • Actavis is also a top large-cap pick among leading funds that heavily accumulated shares in the latest 4Q/2013, and added to their holdings in each of the past four quarters.
    • Given that the stock is in a downtrend, a scaling-in option, buying the stock in fourths for every $10 drop towards the 200-day moving average is a good option.
  • Join Gurus And Buy Value And Growth Play Micron At Cheap Prices
    Tue, Apr. 8 MU 13 Comments

    Summary

    • Another quarter, another strong beat, and Micron shares are down once again. Is this time again to "buy the dip" or are we at the top of the cycle?
    • Micron is a phenomenal stock, a value and growth buy, industry leader, and available once again thanks to the market correction at insanely cheap prices.
    • Guru fund managers more than quintupled their position in Micron in the last five quarters, and it was a "Top 5 Large-Cap Consensus Pick" in Q2'13 and Q3'13.
    • Recommend scaling into the position, buying a third to a fourth here, and adding more as it goes down to the 200-day MA near $19.
  • Will The Third Time Be A Charm For MannKind? Leading Fund Managers Definitely Think So
    Sun, Apr. 6 MNKD 159 Comments

    Summary

    • Positive recommendation on Tuesday from FDA's Endocrinologic and Metabolic Advisory Committee means almost certain approval of Afrezza by the PDUFA date of April 15th.
    • Leading fund managers have been aggressively buying Mannkind, doubling their position in the last few quarters, with recent purchases near current prices, and at almost 200% above year-ago levels.
    • Given that leading fund managers saw value near current prices, even before the FDA Committee's recommendation, the risk-to-reward is even more favorable now.
    • Biotech correction gives investors a unique opportunity to still buy Mannkind at attractive levels, before prices most likely go up in the days leading to the PDUFA deadline.
  • Guru Fund Managers Are Heavily Accumulating BlackBerry Shares. Should You?
    Tue, Apr. 1 BBRY 52 Comments

    Summary

    • BlackBerry reported a mixed quarter last Friday, beating earnings estimates and severely missing revenue estimates. Shares have fallen off, giving back 50% of recent gains, and trading near all-time lows.
    • Guru funds aggressively bought BlackBerry in latest quarter, just like they did in 3Q/2012 prior to a 70% rise in shares. We have observed similar predictive power in other stocks.
    • Averaging-down strategy appropriate, given low downside and potentially huge upside. Initial entry here for a one-third position, followed by adding one-thirds more if it drops below $7 and $6.
  • Take Advantage Of Legislative Grandstanding By Buying Gilead At A Discount
    Thu, Mar. 27 GILD, PFE, JNJ 34 Comments

    Summary

    • Legislative grandstanding gives healthcare investors another opportunity to accumulate Gilead shares at a discount price.
    • Gilead is priced attractively compared to its peer mega-cap pharmaceutical stocks, especially considering its high growth rate. We calculate a potential upside of at least 60% under current market conditions.
    • Gilead is also a favorite play among our hand-picked list of 330+ of Wall Street's leading fund managers, including 78 guru fund managers that accumulated shares in the latest quarter.
    • A rationale strategy would be to buy some shares here, and average down in increments if it falls towards the 200-day moving average in the high-$60's.
  • Leading Fund Managers Are Still Heavily Accumulating Facebook Shares... Should You?
    Thu, Mar. 27 FB 12 Comments

    Summary

    • Despite Facebook's impressive rally, shares are still trading at reasonable valuations, relative to projected growth rates.
    • Leading fund managers have accumulated Facebook shares in six out of the seven quarters, and they hold far fewer shares than in comparable mega-cap technology peers.
    • A pullback in shares, especially to the mid-$50's, will offer a compelling risk-to-reward opportunity to accumulate shares.
  • Gilead Is Not Done; There Is Potentially 50% More Upside This Year
    Fri, Jan. 17 CELG, AMGN, BIIB 21 Comments
  • Rexahn Pharmaceutical Shares Are Still A Buy Despite Recent Volatility
    Wed, Jan. 15 RNN 58 Comments
  • FireEye's Game-Changing Acquisition Of Mandiant Makes It An Ideal Long-Term Buy
    Wed, Jan. 8 FTNT, IMPV, PANW 10 Comments
  • Plug Power Shares Have Great Long-Term Potential, But Are Vulnerable In The Short Term
    Fri, Jan. 3 BLDP, PLUG 42 Comments
  • Twitter's Bubble Has Burst. Get Ready To Short The Double-Top
    Dec. 30, 2013 FB, GRPN, LNKD 14 Comments
  • DryShips Shares Are A Better Value Than Its Drybulk Peers
    Dec. 29, 2013 DRYS 10 Comments
  • Don't Buy Ariad Pharmaceuticals Shares At These Levels
    Dec. 23, 2013 BMY, NVS, ARIA 66 Comments
  • Immunocellular Shares Are Set For A Rebound
    Dec. 20, 2013 NWBO, IMUC 44 Comments
  • Patient, Provider, Insurer, And Government Interests Aligned For 100% Upside On Rockwell Medical
       • Nov. 15, 2013 RMTI 29 Comments
  • Organovo: Love The Technology, Like The Company, But Wait To Buy The Stock
    Nov. 15, 2013 ONVO 68 Comments
  • Strengthen Your Portfolio With U.S. Silica: Potential Double In 12-18 Months
       • Nov. 12, 2013 CRR, EMES, HCLP 10 Comments
  • Predicting Biotech Stock Moves Based On Consensus Picks By Legendary Fund Managers
    Oct. 14, 2013 ACHN, AMRN, INCY 4 Comments
  • A Perfect Trifecta For Thompson Creek
       • Aug. 13, 2013 RGLD, TC 16 Comments
  • Oxford Resource Partners Offers Multi-Bagger Potential Despite Its Problems
       • Jul. 31, 2013 OXF 18 Comments
  • Cerus - An Attractive Long-Term Buy Based On Positive Pipeline Developments
       • Jul. 9, 2013 CERS 4 Comments
  • Battle Of The Serial Disrupters: The Long Case For Netflix
    Jul. 2, 2013 NFLX, AMZN 10 Comments
  • Small-Cap Picks From Last Week's 13D/G 5% Ownership Fund Manager Filings
    Jul. 2, 2013 ACUR, CLNE, RAD 3 Comments
  • Allergan And Other Top Buy-And-Sell Picks By Healthcare Sector-Focused Funds
    Jun. 24, 2013 REGN, SHPG, VRX Comment!
  • Gold Fields And Other Gold Stocks Being Accumulated By Gold Sector-Focused Funds
    Jun. 24, 2013 AEM, AUY, BVN 5 Comments