The bulls are having a tough time holding a lead these days. Two of the major indices registered their first positive closes of the week on Thursday, but they came well off their highs from the morning and threatened another session of losses. It will now take a very strong performance on Friday for the market to secure a second straight positive week since the correction.
The Dow had climbed more than 300 points earlier today, but shed about half of that by the close to advance approximately 165 points. That marked a gain of 0.66% to 24,962.5. The S&P increased 0.10% to 2704. The NASDAQ was in the green for much of the session, but ultimately continued its losing streak with a slip of 0.11% to 7210.1 The index hasn't finished on the positive side all week.
While the market continued to bounce around, the portfolios had their most active session in days. Healthcare Innovators sold a position for a triple-digit gain, and then bought a new one. Surprise Trader picked up two names that report next week, while Home Run Investor bought a biotech that has weathered this difficult market well. Also, ETF Investor sold a small-cap fund for a double-digit return. Read all about these plays in the highlights section below:
Today's Portfolio Highlights:
Healthcare Innovators: Back in July when Sangamo Therapeutics (SGMO) was added to the portfolio, Kevin thought this genomic therapies company was destined to become a $20 stock. Well, he was right…and then some! With today’s approximately 15% surge on news of a partnership with Gilead’s KITE, the stock is now around $25. The editor bought it at $10! This marked the perfect opportunity to sell SGMO and bank a 155% return.
The name was replaced with the addition of Intellia Therapeutics (NTLA), a genome editing company that uses a biological tool known as CRISPR-Cas9. The technology has the potential to permanently edit disease-associated genes in the human body with a single treatment course. Kevin warns, though, that this is a highly speculative name because of possible patent disputes and/or human trial delays. Nevertheless, he is encouraged by the field and the company’s new management change. Learn more about all of today’s moves in the full write-up.
Surprise Trader: The portfolio added a couple stocks on Thursday that are reporting next week. Boise Cascade Company (BCC) is a wood products manufacturer and building materials distributor that reports before the bell on Monday. It has a strong Earnings ESP of 15.79% and beat the Zacks Consensus Estimate by nearly 33% last time.
The other new addition is ProPetro (PUMP), an oilfield services business that should benefit from oil holding steady above $60. It has a nice 13.16% Earnings ESP for the quarter being reported on Wednesday. Dave added each position with a 12.5% allocation. Read the complete commentary for more on these new buys.
Home Run Investor: You wouldn’t know that the market just had a correction by looking at the chart for Iovance Biotherapeutics (IOVA). The biotech has held up well in this volatile market. Plus, the cancer immunotherapy products company reported some good results and then held an offering. Brian Bolan considers those two factors to be key in biotech investing. So he added IOVA to the portfolio on Thursday. See the full write-up for more.
ETF Investor: Neena is reducing the portfolio’s exposure to small caps because large cap growth stocks continue to lead the market. Therefore, the editor sold SPDR S&P 600 Small Cap Value ETF (NYSE:SLYV) on Thursday since the fund has been underperforming the broader market for a few months now. The sell brought a profit of more than 16%.
All the Best,
Jim Giaquinto
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