Merry Christmas from Ray Blanco
Merry Christmas folks.
I hope all your holiday wishes came true.
Realistically, many market players feel more like they were on Santa’s naughty list considering the losses they’ve endured in the markets.
No sector was spared, even our traditionally resilient biotech plays.
Through December the Nasdaq Biotechnology Index (NBI) has shed more than 15% of its value.
We were hoping the index would be able to bounce off its well defined support level. But as more uncertainty returned after the Fed’s rate hike Wednesday, the index broke lower along with the rest of the broader market.
But long term I still like our chance in this sector.
Business is booming in biotech-land.
This year, the FDA has approved a record amount of brand-new drugs. These are new drugs that have high margins and high revenues too.
The FDA is on a path toward making it easier for developers to bring new drugs to market more easily.
So far this year, the FDA has met its approval date goals 100% of the time… and 95% of new drugs got approved in the first review cycle.
That includes Epidiolex, the first-ever FDA-approved cannabis-derived medicine. It also includes many other approvals ranging from new cancer therapies to anti-infectious disease drugs.
Biotech stocks might be in a slump in the short term, but the underlying trends and happenings I’ve noted today gives me confidence that eventually valuations will begin to line up with reality and future potential.
Ray’s Cannabis Corner
Coming to a vending machine near you…
It’s marijuana. In a new trend, cannabis vending machines are popping up around states like Arizona, California, Colorado and Washington. Some have even been seen in Canada.
The machines use top-quality scanning technology to verify age so only those legally allowed to purchase the various cannabis offerings.
Talk about pot going mainstream!
For Technology Profits Daily,
Chief Technology Expert, Technology Profits Daily