Biotech SPBIO, Has No P/E
Is this like Carvana on steroids?
Looking at the top ten components of the SPBIO sector, making up over 14%, of the weighting, none have a P/E ratio.
The three largest weightings are listed below along with hyperlinks to their corporate summaries or research.
Beam Therapeutics Inc.: BEAM
Twist Biosciences Corp.: TWST
Fate Therapeutics Inc.: FATE
The Return on Equity for the list is Negative – 31.9%
With returns like that, it’s unlikely a positive P/E, is showing up anytime soon.
The Market Itself
Livermore worked to prefect his technique, searching for what’s going to happen in a ‘big way’.
Wyckoff discovered the market itself, decides on its next likely course.
Loeb presented the power of ‘focus’; Concentrated positions that eschewed the mediocre mantra of ‘a well-diversified portfolio’.
It’s important to note, Loeb was the former Vice Chairman of E.F. Hutton. The old commercials from the 70s, like the one linked here, were talking about him: ‘When Loeb talks, people listen’.
The Biotech Short
The vultures are circling this sector.
We’ve already shown in the last update, speculative volume on the 3X Inverse fund LABD, is literally off the chart.
The corporate links above, give us a potential ‘why’ for their short positioning.
All three of those companies have a common theme.
Charts by StockCharts
Note: Posts on this site are for education purposes only. They provide one firm’s insight on the markets. Not investment advice. See additional disclaimer here.
The Danger Point®, trade mark: No. 6,505,279
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