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Portfolio Activity

|Includes:CLDX, CLVS, INSY, NPSP, RIG, SGEN, VEREIT Inc. (VER)

There are a couple of investing adages that I reflected upon yesterday.

  1. Know what you own and why you own it.
  2. Do more of what is working and less of what is not.

Simplistic perhaps but definitely helps me when deciding whether to make trading decisions in my portfolio. I sold two stocks yesterday that just were not performing. RIG and ARCP. Both were purchased many months ago primarily for yield. However, I look at total returns and these just haven't cut it. Their price erosion has been much greater than the dividends received. ARCP has a terrible balance sheet now with their repeated debt-sourced acquisitions. Both were sold a losses.

However, days like today remind me why smaller biotechnology plays should be a small part of my portfolio. I view these as pure speculation on the big upside. Trying to take a basket approach with limited risk in each name relative to total portfolio. Today those that have been the biggest laggards are killing it.

  • CLDX up 17%
  • CLVS up 7%
  • INSY up 3.5%
  • NPSP up 1%
  • SGEN up 5%

None have particularly interesting call premiums yet so I'll sit and hold. All of them are interesting M&A targets by larger pharma companies and their recent selloffs provide an improved risk/reward view. I got in too early on all but NPSP, but today is certainly helping erase that.

Disclosure: I am long CLDX, CLVS, INSY, NPSP, SGEN.

Stocks: VER, CLDX, CLVS, INSY, NPSP, RIG, SGEN