It should be an enormous advantage for investors in stocks to have those wildly fluctuating valuations placed on their holdings — and for some investors, it is. After all, if a moody fellow with a farm bordering my property yelled out a price every day to me at which he would either buy my farm or sell me his — and those prices varied widely over short periods of time depending on his mental state — how in the world could I be other than benefited by his erratic behavior? If his daily shout-out was ridiculously low, and I had some spare cash, I would buy his farm. If the number he yelled was absurdly high, I could either sell to him or just go on farming. - A passage from the annual letter of The Oracle of Omaha (Warren Buffett)
As one of the changes that we’re implementing to increase the value for Integrated BioSci Investing partners, we wish to welcome you to another edition of Integrated BioSci Rounds report. As follows, we’ll elucidate the notable trading of the day and the recent insider transactions. Without further ado, let’s dive into the first notable trades. On Feb. 2, 2018, the shares of Solid Biosciences (NASDAQ:SLDB), an innovator of gene therapy to potentially service the Duchenne muscular dystrophy market, continued its rally. While other gene therapy/editing stocks - like CrisprTherapeutics (NASDAQ:CRSP), Editas Medicine (NASDAQ:EDIT), Intellia Therapeutics (NASDAQ:NTLA), Sparks Therapeutics (NASDAQ:ONCE) slid further south, Solid added another $1.69 (+6.19%) to close the session north at $29. Solid recently went public. And, insiders were optimistic enough to acquire an aggregate of over $36M recently.
Figure 1: Notable market movers. (Source: Google Finance).
As alluded to, the market pessimism regarding the innovative breakthrough (gene therapy) was due to the resignation of Dr. Wilson, which caused the shares of these highly promising growers to trade south for the last few sessions. Accordingly, we reviewed his exploratory research on animals. Despite that it offered further insight into gene therapy, his findings are inconsequential to the future outcomes of the various companies under our coverage. Of note, the clinical data forecasting is our cup of tea. And, we’ve missed only the trial for Versartis (NASDAQ:VSAR-OLD) in years of our research experience. And if gene therapy is toxic, Luxturna of Spark Therapeutics wouldn’t have gained the FDA’s approval.
In monitoring insider transactions, one should analyze the data with the grain of salt. That being said, we wish to share with you the quotes from the Former Fidelity-Magellan Manager (Peter Lynch): “Insiders might sell their shares for any number of reasons, but they buy them for only one: they think the price will rise.” Accordingly, Director Srinivas Akkaraju of Syros Pharmaceuticals (NASDAQ: SYRS) executed two transactions back on Dec. 15, 2017, and another one today for roughly $3M total. Chief Business Officer Jeremy Springhorn also initiated a new position: he bought 15,000 shares for $136K.
Moving toward related news: nowadays, most people are using cell phones and internet, both of which emit radiofrequency waves. The elephant in the room is whether they’re safe for our health down the line. Concerns raised regarding their carcinogenic potential. Today, Dr. Jeffrey Shuren, Director of the FDA Center for Devices and Radiological Health issued the National Toxicology Program report stated that it's overall safe.
In the midst of the market selloff on gene therapy/editing and bioscience stocks in general, we recommend our partners to take some profits (if you haven't’ done so) while continuing to hold the rest of your shares for further appreciation - in the foreseeable when new data emerged (which will clear the overhanging cloud on this stellar specialized sector). Regardless of the perceived uncertainty in the gene therapy/editing market as of late, we’re confident in its long-term prospects. If you have yet to build shares, it’s a good idea to stake an initial small purchase to potentially enjoy the run-up in Solid Bioscience.
Author’s Notes: We’re honored that you took the time to read our market intelligence. Founded by Dr. Hung Tran, MD, MS, CNPR, (in collaborations with Analyst Vu, and other PhDs), Integrated BioSci Investing (“IBI”) is delivering stellar returns. To name a few, Nektar, Spectrum, Atara, and Kite procured over 338%, 192%, 187%, and 82% profits, respectively. Our secret sauce is extreme due diligence with expert data analysis. The service features a once-weekly exclusive Alpha-Intelligence article, daily analysis/consulting, and model portfolios. Subscribe to our marketplace now to lock in the legacy price and save money, as we're increasing our price soon.
Disclosure: I/we have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.