Thanks to the ABBV-ESRX deal, shares of hedge fund hotel GILD have been swooning lower. All of the biotech gurus I’ve read are declaring this to be a ‘seminal moment” in biotech land, whereby a pricing war is just around the corner. Whether this is factual or simply conjecture remains to be seen.
Nonetheless, what can be seen is GILD with an 8 handle and a sector down 3% for the day. These stocks have been on gorilla raping runs, so there is significant downside.
Let’s summarize 2014 by looking at the leadership sectors.
Oil and Gas: broken
Biotech: in the process of breaking
Social Media: broken
Technology: doing okay
Maybe 2015 will feature a new set of leaders, such as homebuilders, apparel stores, auto dealerships and names attached to a wealthy consumer. One thing is for certain, 2014 would’ve been a lot easier, and gentler, had I just bought DIA, QQQ and SPY. The art of stock picking has never been harder, which beckons one to seriously pay attention to asset allocation.
Now is a good time to go over your holdings, cut loose the chaff and structure to win in 2015.
Having said that, I sold out of YY for AN today.
NOTE: For Xmas eve, iBC will be featuring two more former bloggers. Stay tuned.
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FIG FIG FIG
Looks like you were right about GPRO lock up. Timing was just off.
i will punch go pro right in the nuts.
Dr. Fly – side by side, it’s quite apparent Der Bingle was the true boss. Loving the visits from the ghosts of iBC past. Btaco absolutely hit it out of the park, right off the bat.
Agreud, UB.
Zombie – there are still quite a few to come. I would love to think The Devil wrote his own post, but am figuring he had Dr, Fly take dictation over the weekend…LOL!! http://ibankcoin.com/flyblog/2014/12/08/for-the-holidays-i-bring-to-you-blogging-bonanza/
HA! Looking forward to the others as well, but the bar is set pretty high at this point.
At some point contagion spreads to America. Until then just ride the trend into the fucking ground. No stockpicking bushit just hedge Long SPY, QQQ, Short EEM, EWC, RSX
yup
BRING OUT THE GINT!
The People of iBC demand it!
Don’t understand why Wall St just noticed the pricing pressure. I am in big pharma and GSK played hardball in late 2013 with ESRX with Advair. Competitor(Symbicort) came in with a cheaper price with their ICS/LABA.
GSK didn’t budge on their price because 85% of the members of ESRX that were on a ICS/LABA were on Advair. GSK thought that gave them leverage. ESRX didn’t blink and pulled Advair off and switched everyone over in 2014 costing GSK $700 million in revenue. This stuffs been going on awhile.
Dr. , a couple of articles to reiterate your idea of storing oil on tankers ( http://ibankcoin.com/flyblog/2014/12/18/an-interesting-play-off-cheap-brent/ ) :
http://www.reuters.com/article/2014/12/23/us-oil-storage-floating-idUSKBN0K11P320141223
http://www.zerohedge.com/news/2014-12-23/2009-back-and-so-risk-free-contango-trade
To play this you have referenced $FRO , any others that you could share with the group? I have dug up $GASS,$TNK,$NAT,$DRYS as potential plays. As always, your thoughts are welcome.
In regards to your idea with $PTRY , what do you think about $TA , seems like the purest play after PTRY with gas down, minions driving and shopping out of their minds..blah blah blah.
Thanks,
Buy the dip. I don’t know why CELG and others have to get pulled down by GILD.
weed industry? a non penny stock one?
Buy a Secret Jardin grow tent and get busy. All the weed stocks suck