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PrudentBiotech.com - Biotech Stocks - Graycell Advisors - Stock Newsletters

Biotech: Opportunity Ahead!

November 30, 2017 Biotechnology sector has corrected over 10%. Poor earnings of larger biotechs knocked the wind out of the sector. An imminent catalyst can push the sector higher, recovering recent losses and possibly make new 52-week highs. Mid cap and small cap companies well-positioned for gains   The months of October and November have…

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Prudent Biotech ~ Biotech Stocks

Biotech Bonanza: A Key Piece Falls In Place!

September 07, 2017 Biotechnology begins to lead the market Acquisition sparks a rally in biotech stocks FDA drug approvals pick up pace Elevated broader market risk during September and October Biotech remains a vital sector for portfolio holdings this year and remains poised for further gains, even with the possibility of higher broader market volatility…

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PrudentBiotech.com - Biotech Stocks

Biotech Bonanza: The Next Leg Up for Biotech Stocks!

July 26, 2017 FDA’s new focus on accelerating drug approvals creates a valuation enhancing environment Sentiment change with the approval of innovative life-saving drug class targeting cancer Earnings season to provide the ramp for further gains Recent Federal Reserve possibility of a policy reset preserves the overall favorable environment Biggest risks are the various Presidential…

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PrudentBiotech.com - Biotech

Biotech Stocks Best Chance for Breakout, Gets Even Better!

June 21, 2017 An Executive Order expected to be issued shortly clarifying health care policy. The measures outlined are expected to be industry-friendly. Price negotiation for Medicare is not on the table, thus removing a big burden on valuations. The Executive Order will prove to be a major tonic for biotechnology. Clinical breakthroughs and easing…

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PrudentBiotech.com - Biotech Stocks - Graycell Advisors - Stock Newsletters

Biotech’s Best Chance!

June 8, 2017 A possible “Comey Rally” Favorable market environment for Biotechs Positive news flow from ASCO Potential catalysts – M&A, broader market advance, and health care policy clarity   Biotechnology sector has flirted with new 52-week highs multiple times this year, only to retreat. The sector, as represented by the Nasdaq Biotechnology Index ETF…

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Prudent Biotech - Red Blood Cells Picturization

Biotech Stocks – Approaching An Inflection Point

Biotechs are performing well this year even in an uncertain environment. Policy clarity is important and we may be approaching an inflection point. A favorable backdrop for biotech stocks to push higher. Investors should maintain some exposure to this volatile but promising sector in 2017.   Over the past month, the focus of the lawmakers…

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Prudent Biotechnology

Positives and Momentum Build for Biotechnology!

March 14, 1017 Trump nominates Scott Gottlieb for FDA Commissioner Appears to settle debate on regulation gutting vs streamlining. Medicare pricing negotiation appears to be not on the table. Big positives for the biotechnology sector     A new leader and, we believe, approaching clarity on Medicare pricing negotiations are two strong positives for the…

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Prudent Biotech

Biotech Bonanza: Breaking New Ground!

March 06, 2017 Biotechnology sector finally recorded a 52-week high, lagging the broader market by 8-months Early stages of the rally, with multiple reasons to drive further highs in the months ahead. Key drivers appear to be improving. Exposure to the sector becomes important to outperform the broader market. Biotechnology has started off the year…

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Graycell Advisors ~ Prudent Biotech

Biotechnology: Ready for New Highs!

February 09, 2017 Biotechs and pharmas remain under the cloud of uncertain policy But recent developments increase confidence on the regulatory front Sufficient biotech sector drivers now exist to create momentum for a breakout Biotech to make 52-weeks highs in the first quarter and deliver further gains beyond     After an extended period of…

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Prudent Biotech

Biotechnology: Can Trump Be A Catalyst For M&A?

January 24, 2017 Trump indicts the industry on “getting away with murder.” Pharmaceutical industry shows early signs of a shift towards self-regulation. Innovation can be spurred by acquisitions. Trump’s activism can perhaps be helpful to the Biotechnology Sector. President Donald Trump had made his intention clear in a Time magazine interview in December 2016, mentioning…

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Biotechnology Stocks - Prudent Biotech

Biotechnology: Is 2017 A Bonanza Year?

January 11, 2017 Biotechnology sector was one of the worst performing sectors in 2016. Political uncertainty has diminished but is still impairing investor confidence Signs are present for the sector to breakout this year. M&A can catalyze momentum and improve investor confidence.   The Biotechnology sector was one of the weakest performers in the stock market…

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Healthcare Executives Are The Highest Paid

January 10, 2017 The Biotechnology sector’s investment performance suffered last year with an over -21% decline. But don’t let that dissuade you from joining drugmaker companies. According to a recent Bloomberg Pay Index, which ranks executives based on awarded compensation, executives at healthcare and pharmaceuticals reaped the highest pay packages. Here’s an interesting graphic which distributes…

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Prudent Biotech - Biotechnology: Entering A Pocket Of Turbulence

Biotechnology Stocks Struck By Bolt From Trump Tower

December 08, 2017 The pharmaceuticals and biotechnology stocks retreated sharply today, as Trump was quoted in a Time magazine “Person of the Year” article as being upset about the high drug prices and doing something about them.   The Biotechnology index represented by large-cap focused IBB shrank 3%, and the midcap/smallcap focused XBI retreated 4% for…

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Biotech Stocks - Graycell Advisors

Biotech Bonanza – 5 Reasons For Biotech Stocks To Shine

The pendulum has swung in the other direction, and Biotechnology is poised to become a leading sector heading into 2017 The diminished risk of policy uncertainty positions the biotech sector at an advantage compared to many other sectors and the broader market Strong uptick in risk appetite creates opportunity for further strong gains in smallcaps and…

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PrudentBiotech.com - Biotech Stocks - Graycell Advisors - Stock Newsletters

Biotech Stocks Overreact, Fearing An Election “Sweep”

Sharp decline in Biotech Stocks last week was a reaction to political winds. Biotechs fear an election sweep giving control of Congress and White House to a single-party. We believe control of Congress will be retained by incumbent party or at worst split evenly. Overreaction to a low probability outcome creates a buying opportunity Biotech…

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Yellen & Clinton Combo To Take Stock Market Higher

SEPTEMBER 29, 2016 Chair Janet Yellen delivers an unchanged monetary policy soothing the market. Hillary Clinton appears to regain her footing in the presidential elections soothing global markets. Technology earnings to be strong and supportive of market valuations, boding well for Nasdaq. Biotechnology breaks higher as M&A activity rises The market trend remains higher. THIS…

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Graycell Advisors - Biotechnology

Biotech Stocks: No Easy Way Out, But Almost There!

SEPTEMBER 15, 2016 Difficult year for Biotech stocks so far with the sector down -17% YTD Fundamentally the biotech sector is gaining strength Meaningful policy clarity to be achieved in 6-weeks based on election outcome Biotechnology is positioned to have a strong fourth quarter if election outcome is sector-favorable The biotech stocks have been facing an uphill task…

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Is Biotechnology Finally Ready To Move Higher?

JULY 25, 2016 Broader market rally to new highs has raised the probability of a Biotechnology breakout. After a nearly 6-month trading range consolidation, the sector appears poised to make an attempt towards new YTD highs. Earnings season can be the catalyst to push the sector higher and past its previous high-point. If no adverse…

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IBB YoYo - Prudent Biotech - Graycell Advisors

Biotechnology – The Perfect Yo-Yo

JULY 06, 2016 The Biotechnology Sector Has Been Range-bound this year. Conditions for a move higher were optimal, till Brexit happened. The generally positive stock market backdrop can help the sector climb higher, but there is more work to be done.   The Biotechnology or Biotech sector continues to struggle with its personal bear market,…

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Brexit Doesn’t Mean An Exit On Stocks

June 30, 2016 One thing that became certain after the British referendum favoring an Exit from the Eurozone, popularly referred to as Brexit for “British Exit,” is a shifting of the timeline for Federal Reserve’s potential interest rate increases. The July increase is most likely off the table, and also now potentially one increase, down…

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Prudent Biotech - Clearer Skies

Biotechnology: Clearer Skies, Ready To Move Higher

JUNE 03, 2016 The biotech sector is well-positioned to move higher now than at any other time this year Consolidation activity has begin to forcefully rise which has spurred investor interest Sector sentiment has improved as well, and should be further helped by the ongoing ASCO conference Investors should consider assuming and raising their exposure…

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Lightning on Biotech Sector - Prudent Biotech

Biotechnology: Entering A Pocket Of Turbulence

The biotechnology sector performed strongly during March and April. Some sector-specific and market-related factors are clouding the positive narrative of the Biotechnology sector. Even though near-term caution is advisable, we anticipate these clouds to be transient and things to become clearer as the month passes. The biotechnology or biotech sector, represented by ETF IBB which…

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The Thundering Quant Bulls

APRIL 21, 2016 Yesterday, April 20, the S&P500 reached a critical stock market technical level of 2100. This is the level around which the index had peaked in November 2015. Why is this level important for stock market investors? Many of the quantitative funds use price levels as a key input in their systematic investment models. An upside…

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Our Investing Biases Cost Us Investment Returns!

APRIL 07, 2016 We are influenced by the pool of emotions and experiences accumulated over our lifetime, which create certain preferences or proclivities in our thinking. We lean on these tendencies, when making our decisions, even when that results in an irrational or unproductive decision. There is a whole behavioral field of study in psychology around this…

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Biotech Stock Investing - PrudentBiotech.com

Biotechnology Stocks Poised To Move Higher!

MARCH 28, 2016 The Biotechnology sector has not participated in the recent market rise for reasons which are losing their grip We believe the process of bottoming out has occurred, and the sector is now positioned for future gains into Summer Federal Reserve’s policy is supportive of higher valuations It is time to begin buying…

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Federal Reserve Bank - Prudent Biotech article on stock market outlook

It’s The Fed’s Move Once Again!
Stock Market Outlook

MARCH 15, 2016 Federal Reserve will update its “dot plot” to reflect the median rate hikes for 2016, and that number is widely expected to come down to 3 from 4 A more settled interest rate picture, and continuing economic growth should create an environment for a durable rally into the year We believe the next…

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Biotech Stock Market

Is The Biotech Sector Bottoming Out?

FEBRUARY 01, 2016 Biotech sector has corrected 35% since its peak in July 2015 Worst appears to be over and we are close to a Biotech bottom, if not there yet More consolidation may be required, but it’s time to freshen up the Biotech stocks list The Biotech sector is one of the most dynamic…

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Stock Market Decline

Don’t Go Chasing The Market Lows!

JANUARY 15, 2016 Don’t Go Chasing Market Lows … they just keep getting lower! Biotechs represent a sector with tremendous potential. At the same time, it’s a highly volatile sector and quite sensitive to market conditions. As we experience a resetting of market expectations following a change in the Federal Reserve policy, it’s quite tempting…

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The Fed’s Done For Now – Stock Market And Small Cap Viewpoint For 2016

JANUARY 07, 2016 We anticipate the market decline to provide fresh legs for a new rally later in the first quarter and early second quarter. For the year, we anticipate a positive year, with single-digit returns for S&P 500 and Nasdaq. The market expectation we laid out in our January 2015 commentary, and reiterated in…

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Biotech Stocks - DNA Helix

Biotech Stocks Can’t Be Ignored!

DECEMBER 2015 Biotech is a sector that has outperformed the market meaningfully over a market cycle The general perception of the sector being highly risky overlooks a portfolio approach as well as risk measures that suggest prudent exposure to biotech can enhance returns The message is clear – Don’t Ignore Biotech Since the Great Recession,…

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