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Biotech Week In Review: Sector Bounces, EHA In Focus

Summary

XBI finished up 4.39% for the week. It's still down 5% over the past month.

ROTY performance cooled some this week as we cut our losses in two holdings (about 10% and 15% losses, respectively).

This week we initiated pilot positions in two interesting names I've provided research on a number of times in the past. Both have key catalysts in Q3.

European Hematology Association (EHA) Congress provides important catalyst for biotech sector next week and we own a couple names that are presenting.

I remind readers that for each loser, it's a good idea to analyze where you went wrong in order to improve and avoid making the same mistakes. Occasionally, you'll find that some negative surprises are simply part of investing in this sector.

Performance for the Past Week

Chart
Data by YCharts

1 Month Performance

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Data by YCharts

1 Year Performance

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Data by YCharts

Daily Advanced Chart

ROTY 10 Stock Model Account Performance

Recently we initiated two new pilot positions in stocks of companies with important Q3 catalysts coming up.

Public Articles From This Week

Genocea Biosciences: Updates To Thesis  GNCA

Mirati Therapeutics: Updates To Thesis, ASCO Winner Sans Data MRTX

Molecular Templates: Updates To Thesis

Interesting Runners of the Week

A Few Useful Nuggets From Chat and Elsewhere

  • EHA looks to be a significant catalyst for biotech next week. In ROTY we own a couple EHA names with presentations coming up. 
  • As pointed out in Chat by multiple knowledgeable members, a number of solid bio names have been punished in the past couple weeks. Whether your focus is on commercial concerns or early stage with positive initial data, it's a good time to scan for new conviction ideas and patiently scale in. Especially for long term ideas, ¨patiently¨ can mean spacing out your purchases every couple months (in case further volatility provides even cheaper valuations for you to get in at).
  • In today's ROTY edition, I noted that for every loser in my portfolio, I try to analyze them to see where I went wrong and what (if anything) I could have done better. Some bio blowups are inevitable, especially with unexpected news. Others are entirely avoidable and in my case can be chalked up to not doing a good job of manging risk, sizing my positions or missing key red flags. The goal is always is to continually improve- remember it's a marathon not a sprint! 

Hope everyone has a great weekend.

JF

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