Trade Alert: Biotechs For A Post-War World
Trades on two biotechs from our Multibaggers list, and one nuclear stock from our Top Names, with bullish exposure extending out past when we believe the Iran War will have been wrapped up.
Biotech Setups In A Less Panicked Market
In yesterday’s trade alert, we noted one reason we’ve been adding long exposure here: our view that the Iran war, which has been weighing on markets, is more likely to be resolved within the next several weeks than to drag on indefinitely.
News that broke after we published that alert only reinforced that view. President Trump announced that his delayed summit with President Xi in Beijing had been rescheduled for May 14th-15th—a timing choice that strongly suggests he expects this war to be wrapped up before then, or at least brought under control enough to shift his attention back to great-power diplomacy.
Two Biotech Names From Our Multibaggers Workflow
With that macro backdrop in mind, today we’re looking at two biotech names from our Multibaggers X list (which is a subset of our Market Watchers X list). Both fit the kind of setup we like from that workflow: stocks that have drawn the attention of sharp traders and analysts, and where the fundamental case has strengthened enough to justify taking a closer look.
One of them is a name we traded last year and still have calls on, though those calls are currently out-of-the-money. The stock actually looks like a better bet now than it did then, in part because the company has since moved from promise toward proof: it has posted substantial commercial revenue, and earlier this year its board authorized a share repurchase program equal to a meaningful chunk of its market cap. That doesn’t guarantee the stock turns higher on our timetable, of course—but it does suggest a business that now has more financial traction, and management that sees value at current levels.
A More Classic Catalyst Setup
The other is a more classic biotech catalyst setup: a company with an important regulatory date ahead, plus fresh clinical data that appear to strengthen the case for its lead program. In other words, this isn’t just a story about a potentially friendlier policy environment for biotech in general; it’s also a case where the company-specific news flow has improved in a way that could matter over the next few months.
Plus, A Top Names Trade
In addition, we’ve also got a Top Names trade, on another nuclear name that hit our ranking last night. When multiple names from the same industry appear in our Top Names in the same week, it’s usually a signal worth paying attention to.
Full details on all three trades below, including the exact structures we’re using and our pre-set exit plans, as usual.
Today’s First Multibaggers Trade
Medtech / commercial inflection theme
