ABBV

High Conviction Trades- the Holly Grail of Investing

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It was George Soros that said, “there is no amount of money too big to bet when you know you are right.” It’s the holy grail of investing. The trade that we are all looking for.  One where we can leverage up and bet the farm.  It’s the time when you shove all the chips onto the table and tell the croupier you’re betting it all on 00. There is no investor with more conviction than a corporate insider betting big on his own company’s stock. https://theinsidersfund.com/inside-information Of course, betting the farm is the most dangerous type of behavior for an … Read more

Notable Insider Buys Week of 8-23-19 as Trump Tweets Scare Investors

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We are throwing out AESE as this wasn’t filed correctly and upon further review, it was deemed not to be an open market purchase Fossil Group insiders bought $2.2 million worth of this watch and teen wear company. FOSL group is in a race down the down staircase with decreasing revenues and decreasing SGA. Change Health Care is McKesson’s giant conglomerate of health tech companies recently gone public with Blackstone as their private equity investors. I haven’t had good luck with private equity IPOs, saddled with debt and selling institutional investors. This one doesn’t have any long term debt but it … Read more

‘s Insider Buys

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Odonate ODT’s Chairman and CEO Kevin Tang has made open market purchases of more than $36 million in so far this June, including $10 million on the spot secondary at the highest price his paid all year.   This is a bet the farm investment but seems to be validated by the market as ODT stock has more than tripled this year. Three insiders buy AbbVie after Wall Street choked on their purchase of Allergan.  Do two out of favor big pharma companies add up to 4? Wall Street certainly doesn’t think so. Carnival Cruise CEO Donald Arnold bought just under … Read more

Pullback in pharma has created a compelling buying opportunity

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The fundamentals are good for the health care sector in general.  Recent news articles on drug pricing/gouging are not likely to effect meaningful change for the overall group dynamics in my opinion or that any changes may be long time in coming and tempered far below market expectations. It’s true that it may compress multiple prices for a while as Evercore #1 ranked biotech analyst Mark Schoenebaum said on CNBC today but I agree with him, its really about innovation.  His favorite picks are Gilead GILD and maintains a price target of $115 on the stock.  I am not as enthusiastic … Read more

U.S. Drug Spending Increases Most in 13 Years to $373.9 Billion – Bloomberg Business

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Often times it seems that the news, particularly economic news is out of step with the price action in the stock market.  This headline is not. No wonder healthcare is the best performing sector in the market and likely to continue to outperform with the huge demographic tailwinds behind it. U.S. spending on prescription drugs saw the largest increase since 2001, with the nation’s pharmacy bill rising to $373.9 billion last year as new treatments came to market and manufacturers increased prices on old ones.“Last year’s $43 billion growth in spending on medicines was the highest ever,” said Murray Aitken, … Read more