
Tech Expert Proclaims “Biotech’s UNSTOPPABLE”
[Editor’s Note: According to resident tech expert, Ray Blanco, “biotech’s unstoppable.” Today, he takes over the Rude to show us why…]
Record highs and 15% gains year-to-date…
According to The Wall Street Journal last week, that’s the S&P Biotechnology Select Index’s stellar performance in a nutshell this year.
Mid- and small-sized biotechs are surging.
But, that’s not the only proof positive chart showing how hot biotechs truly are.
Large-caps are also outperforming the major indexes big time.
To date, the SPDR S&P Biotech ETF (NYSE: XBI) is trouncing both S&P 500 and Dow gains by double digits. Just check out this chart…
This performance makes biotech hands down one of the best sectors around right now.
And it means tons of amazing profit chances ahead.
Compared to trade war drama and Helsinki developments biotech stories may not seem as captivating.
But the cold hard cash it could put in your pocket is the most important story you need to hear.
Which is why you can’t ignore biotech’s run-up if you want to walk away a market winner in 2018.
Here’s what’s fueling the surge.
Biotech IPOs Offer Quality Over Quantity
The Wall Street Journal report notes: “Upstart companies are taking advantage of this market strength, and investors are rewarding them.”
And while the slew of biotech IPOs we saw in previous years is waning, the offerings we’ve seen so far in 2018 are of the highest quality.
According to Dealogic data, biotech IPOs have added $3.4 billion in combined value so far this year, as reported by The Journal.
But that’s not the only catalyst helping biotech stocks soar.
Large-Cap Biotechs Thrive Off M&As
Another factor fueling biotech’s run-up is the strong trend of mergers and acquisitions this year.
The Journal reports, “big drugmakers, desperate to boost growth rates, are willing to pay up for relatively scarce high-quality biotechs.”
Which means large-cap biotechs are shelling out top-dollar for smaller, upstart companies in order to gain the rights to the most advanced breakthroughs and therapies.
It also means big paydays for those owning shares of these smaller buyout targets.
But there’s also another major tailwind at play.
Dozens of New FDA Trials Ahead
We have at least 63 new FDA trial dates scheduled to review drugs for approval over the coming months.
If any number of these drugs gets a thumbs up, they’re free to start marketing the drug… and share prices could soar in anticipation.
That could mean up to 63 new profit plays coming soon. In addition to any new merger or IPO opportunities already upon us.
The bottom line: Biotech stocks took some time off to consolidate in the beginning of the year.
But fast forward to July and the sector is once again marching towards record highs and offering up juicy new trading opportunities…
In fact, I just concluded the biggest investigation of my career. It uncovered a way for you to grab shares of a biotech “covert IPO” free.
The only catch is you must act before July 31. Click here for the details.
For Technology Profits Daily,
Ray Blanco