Correction – Since my IRA#1 is invested in only one fund, currently CashReserves, it is going to invest in the best fund, SBiotechnology, rather than in SmallCapGrowth.
Since IRA#2 is invested in five funds, and currently has an investment in SBiotechnology, it is going to invest in SmallCapGrowth.
Receptos, Inc. (RCPT) is a biotech stock with total revenue of about 5M none from sales. It went public about 2 years ago at a price of 15. It closed this week after receiving a buyout offer which created a 15% increase to 229. At that price it has a total market value of 7B+. In it’s 2+ years it has not had any product sales. Anyone see a biotech stock bubble here? There are 100+ biotech companies with no earnings. This activity looks exactly like 1999 when the bubble was in any stock ending in .com . Enjoy the gain, but be ready to sell when the investment starts to go down. From the end of 1999 to the summer of 2002 the NASDAQ Composite declined 78%.
IBD TBP’s Market Pulse is “Confirmed uptrend” – Time to invest. Thursday’s market changed the Market Pulse and now it is time to buy.
My current investments:
SPharmaceuticals has a price of 24.89, a sell price 23.65, a rank of 02, and is a Hold.
SHealthCare has a price of 240.22 a sell price 246.88, a rank of 03, and is a Hold.
SBiotechnology has a price of 274.03, a sell price 295.41, a rank of 01, and is a Hold.
SmallCapGrowth has a price of 21.31, a sell price TBD, a rank of 04, and is a Buy. SmallCapGrowth is another of those funds which has a short term redemption fee of 1.5% if sold within 90 days.
My portfolio changes this weekend:
IRA #1 – Invest 100% in SmallCapGrowth
IRA #2 – Invest 20% in SmallCapGrowth
My portfolio market exposure after this weekend’s changes:
IRA #1 – 100% invested
IRA #2 – 80% invested