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The Biotech Forum Weekend Game Plan

Oct. 01, 2016 2:48 PM ETIBB6 Comments
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"Instead of giving a politician the keys to the city, it might be better to change the locks." - Doug Larson

Biotech closed out the month and third quarter on a high note as the main indices were up more than one percent during the last trading day of the quarter yesterday. Biotech had a very sharp rise in July and then spent August and September gyrating between a very narrow trading range of 280 to 300 on the iShares Nasdaq Biotechnology ETF(IBB) which is the largest of the biotech ETFs on the market. The sector did deliver more than a 10% overall return during the third quarter overall.

M&A activity picked up during the quarter after having 60% less transaction volume in the first half of 2016 as for the same period in 2015. Pfizer (PFE) and Allergan (AGN) have been active acquirers since the Treasury Department derailed their mega-merger in April and I continue to think they will be on the "hunt".

Look for my article next week on some logical small cap M&A targets on SeekingAlpha. I also will be doing a podcast with Brian Bain that should hit Tuesday or Wednesday on some attractive small caps with some upcoming catalysts such as PDUFA dates in the fourth quarter.

The Biotech Forum just issued a new free investment report on a small biotech concern that insiders are buying and that analysts think has at least 75% upside. It can still be found here for those looking for a trading idea Monday. To get these weekly free reports going forward just register at bretjenseninvests.com.

Tomorrow my instablog post will cover a ~$5 biotech that analysts believe should be trading at two to three times its current levels in the market. We will also offer up some cheap RB options for those Fan Duel or Draft King players out there. Finally, we will be making a special announcement tomorrow in our early morning instablog. Today we cover some attractive and overlooked WR options for Week 4.

Note: Following insiders into attractive small cap & mid-cap plays within biotech and other sectors successfully has been a key reason for the standout performance of the Insiders Forum portfolio since our launch in late June.

The offering aims to build, modify and maintain a 15 stock optimized portfolio of attractive small & mid-cap stocks insiders are currently buying across numerous industries. We are building our portfolio one stock every week and our 15th selection will go out mid-week.

As of the market close yesterday. Out of our 14 current positions, 9 are up, one is flat and four are down, two only slightly. From a portfolio perspective allocating $10,000 each into the eventual 15 stock $150,000 portfolio, we would be up 17.82% at a portfolio level easily outdistancing the 3.03% return for just buying $10,000 chunks of the Russell 2000 at the same time of each Insiders Forum selection.

I promised my marketing partner that we would close out our free two week trial promo as soon as Insiders Forum broke into the Top Five of the most subscribed to services of the 65 offered via SeekingAlpha's Marketplace. We did that this Thursday. However, after adding just over 100 subscribers in September, it seems a shame to stop at 195 Insider Forum members. Therefore I am holding the promo open until we hit the big 200! If attractive stocks insiders are buying is of interest to you as an investor, I encourage you to experience the Insiders Forum on a totally risk free basis before this promotion ends. Just click HERE for your two week free trial.

One of my favorite strategies in Fan Duel is paring two stud WR's with an overlooked and cheap option as a good way to maximize my salary cap and get a robust return from this position group. This week my top three receivers were A.J. Green ($8,600) who went off for over 28 points at home Thursday against a dismal Dolphin secondary, Deandre Hopkins ($8,600) who is at home against the average CB Parrish Cox and Allen Robinson ($8,300) who draws the dreadful Colts D in London after last week's two TD performance.

I think other big name WR's are less attractive this week. Antonio Brown ($9,400) is the most expensive WR in the league and is at home but draws Marcus Peters this week who is a top five CB. Julio Jones ($8,500) is slso at home but against a tough Carolina D and is battling a troublesome groin injury. The always dangerous Brandin Cooks ($8,200) is on the road and also likely to draw Justin Veritt, another top CB.

For my undervalued gems to mix and match them with, here are my three undervalued gems this week.

1. Jamison Crowder ($6,000) plays at home against Cleveland, a weak pass defense. Crowder's points have gone up each week this year and he scored more than 15 on the road against the Giants in week 3. Desean Jackson will play but its not at 100% and Crowder should get at least the seven targets he had last week on the road. Rookie WR Josh Doctson has also been ruled out for the game due to injury.

2. John Brown ($6,200) plays at home against the Rams this week. The second year player has gotten off to a slow start in 2016 thanks to having to overcome a concussion but put up some big numbers for a rookie. The burner is always a threat to take it to the house and seems to be rounding into form with 11 targets last week on the road. With Michael Floyd coming off his own concussion, Brown could be the number #2 target this week for a potent Cards offense behind Hall of Famer Larry Fitzgerald as the team faces an early season "must win" against the Rams which have a middle of the pack pass defense.

3. Kevin White ($5,500), the former first round pick from last year was lost before playing a down in his rookie season and has had a slow start to 2016. However, he was targeted 14 times in a loss to the Cowboys on the road last week. The speed demon faces a weak Detroit team at home this week.

Thank You & Happy Hunting

Bret Jensen

Founder, Biotech Forum & Insiders Forum

Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.

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