We’ve pounded the table for biotech stocks for months.
All as the pundits noted the sector run was over. But as it turned out, we were right, as former bears turn bullish, jumping into the sector’s hottest names.
Earnings for many sector giants have been red hot. Undervalued names are bouncing back. Mergers are in full swing after a record-breaking string of activity in 2015. Relypsa for example is being acquired as part of a $1.5 billion deal – a 60% premium. The once heavily pressured NASDAQ Biotech Index (IBB) is flirting with $300 again.
So it wasn’t a big surprise that Adverum Biotechnologies (ADVM) – which we recommended in the July 2016 issue of The Cheap Investor -- recently landed at $4.33 a share from a $3.55 entry price. That’s a potential gain of 22% in weeks.