Tuesday, July 15, 2014

Janet Yellen, Stock Picker; I buy more Protalix

Apparently Janet Yellen believes she can pick stocks. Or at least tell people to dump their "smaller" social Internet stocks and biotechnology companies.

So there was a sale today as the ever gullible dumped stocks they picked up when some other idiot told them to buy them in the past.

I am okay with my portfolio right now, particularly my healthcare and biotechnology stocks. I believe some of my companies like Gilead, Amgen, Biogen and Celgene will report increased earnings during the remainder of 2014 and beyond, so I don't ponder their daily volatility much.

I have a number of smaller positions in riskier companies that need good Phase III clinical results and then FDA approval to get their wares to market. I was tempted to buy more today, but ever-cautious, I only picked up one:

Protalix Biotherapeutics (PLX). I doubled my tiny amount of PLX, raising it to just above 1% of my portfolio.

One of my main criteria for picking up small, risky biotechs is that market capitalization indicates that success is not priced in, at least not too much.

If you want, you are welcome to look at my portfolio positions. In most cases there are links to my coverage (analyst conference summaries and articles) of the stocks. My list is not a set of recommendations, I am just being transparent because I am a financial writer.

P.S. Janet Yellen and I have one thing in common: we both have undergraduate degrees from Brown University. Mine was in Political Science. I took two economics courses at Brown, microeconomics and macroeconomics. I started studying the Federal Reserve then, and even then I knew that some of what I was being fed was bullshit.

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