We have done well with Biotech over the years, and we have a current 100% winner in our Weekly Wrap portfolio that is helping us push over a 400% gain in our Daily, but the sector requires a lot of homework and chart work.
The latter part of you research can get trumped as a chart does no good if there is a sudden approval or disapproval of a drug but for the most part, if you follow the news and watch the stock there are opportunities to make some incredible returns.
We have another current situation on a stock that could be making a comeback down the road. The stock took a tumble in early October from $17 to under $6 and has been building a nice base. Shares are just south of $5 and could trade to $8-$10 over the next 6 months if the FDA reverses a recent decision against one of the company’s drugs.
We like the risk/ reward at current levels and we are suggesting small positions at current levels.
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Tags: hot biotech stocks