Laggard Worth A Look?
I have been showing my age recently, with my look back at certain market scenarios, most recently with my “Where’s The Beef” Consumer Note from 1/9. Today I take a glance at the former “big four” biotech plays (now three still in existence with CELG being bought out by BMY 2 years ago). Who remembers their dominance in years past, and now their underperformance, as more agile competitors steal the spotlight. BIIB has enjoyed three big WEEKLY 25-30% gainers, the weeks ending 10/25/19, 2/7/20 and 11/6/20, but it was never able to gain traction following those massive moves. AMGN sits 14% off most recent all time highs, as it recorded a big reversal the week ending 1/29, briefly breaking above the 260 number which was resistance dating back to July 2020. Below we take a peek at the laggard of the quartet in GILD. It now trades 22% off most recent 52 week highs, and it also had a brief charge to the mid 80s about a year ago after vaccine news. But it to could not keep pace with the hearty advance, and actually fell 26 of 35 weeks ending between 5/8-12/25/20. The stock has now gained ground 5 of the last 6 weeks, with 3 adding at least 4%, and is above its 200 day SMA, which it was underneath for the prior 7 months before this year.