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Biotech Week In Review: XBI Consolidates, Bounce Continues For ROTY's Model Account

Sep. 20, 2019 11:03 PM ET2 Comments
Please Note: Blog posts are not selected, edited or screened by Seeking Alpha editors.

Summary

  • XBI continues to consolidate around its 50 day moving average. For the week XBI finished flat.
  • Performance for ROTY's model account has improved in September (doubled the XBI), but Q3 performance remains red (-8.6%).
  • I published two public articles this week (3 if you count REPL update piece still pending).
  • Interesting runners this week include REPL, AMAG, ETON, ALDR and MYOK.
  • While I did put some funds to work in an idea with near term data, my objective is to continue raising our cash position into the end of the year.

Performance for the Past Week

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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

ROTY's model account continues to bounce back, fueled by multiple Catalyst and Revaluation ideas that have rebounded or are experiencing run ups into key events. 

As noted in prior posts, my intention has been to methodically raise cash in the model account as we take partial profits and continue to cull losers. 

However, this week cash balance for the model account fell back to 18% weighting as I put some funds to work in a small-cap medical device player with data readout coming soon.

We have several data readouts coming in Q3, so it'll be interesting to see whether we take full or partial profits (or losses) after results come out. Cash position could rise substantially as a result, as I'm in no rush to buy new names unless setups are truly idea. 

Forcing trades only causes us to lose hard earned gains in our accounts, giving them back to the market. Best to wait patiently in cash for the right pitches to swing at.

Public Articles From This Week

*Keep in mind after 10 days archived content remains available for ROTY members (utilize for due diligence purposes for stocks of interest to you).

**Names below interested me, but at the moment of publication did not meet my criteria for inclusion in ROTY's model account.

Fate Therapeutics: Pioneer In iPSC Space Continues To Make Progress- Agree with member A. May and others that this one could offer a better entry point later in Q4 2019 or 1H 2020

Bicycle Therapeutics: Under The Radar Platform Technology Idea Interesting platform tech idea, too early stage and too low volume for ROTY

Interesting Runners of the Week

Random Thoughts

Definitely been a good week in the market and our Live Chat- seems like quite a few names with near term (Q3 or Q4) catalysts on our radar of late. Members appear to be making increasingly better use of ROTY's Portfolio Xchange channel to share holdings and receive critical feedback.

Wherever you find it, to have success in the market it's vital to have at least a couple veterans you can bounce ideas off of and who are willing to tell you what you don't want to hear, to point out red flags in stocks you own or trades of yours that failed the logic test.

Hope everyone has a great weekend!

JF

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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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