Healthcare/biotech?

[Phroig]

Healthcare has performed quite a bit worse than the S&P, and biotech has positively crashed. XBI, the biotech ETF is down almost 25% over the past month alone. Do any of you follow this sector, and if so, what are your thoughts?

 

[JoeWras]

My opinion is that sector chasing is almost as complicated as individual stock chasing.

In early 2020, I got out of VGHAX. I've simplified. I figured VGHAX would have a bright future when I bought it in 2008. It had a good early run, but was too volatile. I was slightly lucky, but I would have been better just dropping it in VTSAX or VTI.

 

[matjung]

The sector is becoming more interesting.
I'm thinking about becoming a shareholder of BB Biotech.
https://www.bbbiotech.ch/ch-en/private/investors/bb-biotech-stock/dividend-policy
If you are scared of CHF or EUR they also trade in USD
https://seekingalpha.com/symbol/BBAGF
The company attracts the Buy and Hold investor.
From a US view point it is probably a boring foreign small cap.

Dividend 2022: CHF 3.85 (proposed)

In line with the stated dividend policy of past years, the Board of Directors’ dividend proposal at the Annual General Meeting on March 17, 2022 will be an ordinary dividend of CHF 3.85 per share – which corresponds to a 5% return on the volume-weighted average closing price of BB Biotech shares in December 2021.

BB invests into other Biotechs without being an ETF.

https://www.bbbiotech.ch/ch-en/private/portfolio-strategy/performance-portfolio/our-investments

 

[AlabaMalaysia]

Yes I follow the sector due to being a scientist in the biotech sector. I have owned AbbVie stock for around 7 years and am quite familiar with their future cancer therapy pipelines. AbbVie has a annual dividend yield of ~4% and I expect it to do well going forward with monoclonal antibody targeted therapies coming.

I am not really into healthcare/biotech broad basket etfs or mutual funds as various company pipelines and future prospects are just too different company to company I prefer owning individual companies if venturing into this sector imo. There are many companies globally doing interesting things I could go on and on about my book in this sector but there are many trends that are obvious if you want to really do homework in this sector. China has many opportunities as well as USA based companies. Valuations are respectable at this time for many of the companies especially those that pay healthly dividends.

 

[Phroig]

Thanks for the suggestions. I prefer not to invest in individual stocks. I believe foreign stocks which don’t trade as ADRs also trigger FATCA reporting.

 

[24601NoMore]

My Health Care sector fund (PRHSX) is down 14.3% YTD, which is surprising as I expected healthcare to be one of the most inelastic market areas / areas with lowest volatility due to aging and constant demand..

Shows you what I know

 

[Montecfo]

Healthcare has been awful. I like its prospects, particularly pharma.

I go with individual names, not ETFs. As far as biotech specifically it has been a while since I owned more than 1 or 2. Currently ABBV and until sometime last year I was trading EXAS.

There may be opportunity when biotechs put in a bottom but I think this year we will see additional bloodletting.

I do like several of the big drug stocks which I have been adding to over past couple of years. They seem very cheap and have good earnings visibility and reliable dividends. Just out of favor.

 

[freedom2022]

I own Illumina, genes sequencing company. Not many companies able to do. However P/E is very high (58).

 

[cyber888]

Biotech, like Tech, maybe be due for a rebound. The sector is being shorted.

 

[Fermion]

Biotech, like Tech, maybe be due for a rebound. The sector is being shorted.

That is the understatement of the day. There are over 115 biotech companies right now that are trading below net cash on hand (cash minus any debt).

 

[Winemaker]

I've been catching a falling knife with Nektar Theraputics. NKTR, 94% owned by institutions, 1% owned by insiders, 5% owned by suckers like me. Was a $100 stock, I took a position at $32, it's now the $10 range. It's in my speculation of my portfolio.

 

[ownyourfuture]

Even though it's a sector fund, I suppose it still counts as healthcare.
I've held Fidelity Select Medical Technology & Devices Portfolio (FSMEX) since August 2009.

According to market watch, the 10 year annualized return is 19.18% Vs 15.10% for the S&P 500

I also own a healthcare related REIT (NHI) but that's strictly for yield.

 

[Fermion]

I've been catching a falling knife with Nektar Theraputics. NKTR, 94% owned by institutions, 1% owned by insiders, 5% owned by suckers like me. Was a $100 stock, I took a position at $32, it's now the $10 range. It's in my speculation of my portfolio.

I bought some NKTR at $13 and wrote a Feb 18 $15 call for $1.90, thinking there was no way it could drop below $11 in a month.

LOL.

 

[ownyourfuture]

I bought some NKTR at $13 and wrote a Feb 18 $15 call for $1.90, thinking there was no way it could drop below $11 in a month.

LOL.

We've all been there.

 

[matjung]

Would you consider Cannabis stocks as part of Healthcare and Wellbeing?
Last year the sector crashed down.
Any thoughts about a sector recovery this year?

 

[Phroig]

I sold my healthcare fund for a tiny gain last week. Money went into a value ETF. The sector should do just fine now.