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DoctoRx
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Over 30 years of investing in individual stocks. Extensive business experience with small to mid-size companies, including as CEO. Many hundreds of blog posts on financial and economic matters since 2008. Focus on value with catalysts for upside price action. Background as a physician and... More
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  • Brief Comments On Portola And Gilead 2 comments
    Jul 7, 2014 5:48 PM | about stocks: PTLA

    I recently wrote my first article on Portola (NASDAQ:PTLA), a biotech/biopharma company with two lead products. One is focused on the oral anticoagulant market as a Factor Xa inhibitor, and the other is an intravenous antidote to the same product. PTLA today announced a renewed, phase 3 collaboration with Daiichi Sankyo, a major company developing a Xa inhibitor, yet PTLA took a 10% hit.

    In my bullish SA article on Portola, I warned that the stock was quite risky. It has been on a tear. My guess is that this plunge today was due to profit-taking, and I bought a little more PTLA today near the lows. Could there have been a brokerage downgrade or "red chip" stock advisory suggesting selling PTLA today to account for the move down? I do not know, but it's possible.

    My main investment activity today was to increase my overweight position in Gilead Sciences (NASDAQ:GILD). I sold about half my positions in Celgene (NASDAQ:CELG) and Pharmacyclics (NASDAQ:PCYC), both for about 10% short-term profits in trading accounts (no tax incurred on the gains) and plowed them mostly back into GILD shares, some in-the-money 2015 LEAP calls on GILD, plus cash reserves plus PTLA as well as Verizon (NYSE:VZ).

    Time and SA editors permitting, I'll have much more to say about GILD soon, in a pre-earnings article. In a generally rich market, this is one of the few stocks that I think is materially below fair value.

    Disclosure: The author is long GILD, PTLA, CELG, PCYC.

    Additional disclosure: Not investment advice. I am not an investment adviser.

    Themes: Pharmaceuticals Stocks: PTLA
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Comments (2)
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  • BioNoob
    , contributor
    Comments (75) | Send Message
     
    Let me start by saying, I'm a big fan of your articles and we appear to be on the same wavelength regarding stocks. I'm heavily weighted in GILD and held PTLA until recently. Took some profit and eagerly awaiting a signfificant drop today to reestablish a long position.

     

    Are these trade made through a pre-tax brokerage account like an IRA to not incur short term taxation?
    7 Jul 2014, 07:06 PM Reply Like
  • Gregory Block
    , contributor
    Comments (304) | Send Message
     
    Thanks for writing - I look forward to more of your insights on GILD.
    7 Jul 2014, 08:25 PM Reply Like
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