Biogen IDEC Inc. (BIIB)

A large bio-pharma. They enjoyed a recent jump in the stock price had to do with seeing promising results from a phase 2 trial drug treating Alzheimer's. If this drug ultimately passes, it would be an multi-billion-dollar opportunity. Free cash flow is a high 7%. They'll likely make an acqusition with all this cash to deepend their portfolio. (Analysts' price target: $365.00)

He Prefers VRTX-Q. You need to invest in the most innovative companies in this sector.

A situation where the market is nervous, the stock slips, which then creates opportunity. Investors won't pay these kinds of multiples out of uncertainty. Biogen is focussed on developing solutions for MS; their Alzheimer's drug is in phase 3 testing, which he personally hopes works. Be patient. BIIB will bounce around with failed drug tests, but this company will yield winning drugs.

He loves when good companies pullback in price. He would be tempted to buy here and more if it fell to $240. His model price is $402.

Seasonal strength is from May until the end of September. It is an opportunity to take some money off the table.

It has a large franchise in MS which comprises 75% of their business. He is seeing potential threat to this franchise from two companies. Their Alzheimer’ drug comes to trial in 2019 and has high risk.

US healthcare for the long-term? As opposed to picking just one stock in a sector, your best bet probably is an ETF. If you are looking for an individual stock, one that he holds is Biogen. It is quite cheap relative to its ability to grow earnings.

He doesn’t own this because of their concentration in the MS market. There are 2 other companies in this area with possible better drugs. He feels there are going to be very binary outcomes with no dividends. Prefers something with a little more diversity.

A bio pharmaceutical. If you look at the traditional Pharma space, the chemical-based companies, the bio-based companies were always out there, coming along, but basically not making a lot of money and were often single drug companies, virtually reinvesting all their cash flow. They have now matured and into much stronger growth companies than the traditional pharmas. They also have lower multiples than they did 5-6 years ago. That makes it quite attractive. (Analysts’ price target is $305.)

(Market Call Minute.) Many people thought the Biotech sector would behave better if Trump got elected. It has had a lift, but it remains to be seen if it can be followed through.

(Market Call Minute.) One of the better growth stories in the US biotech side. They have more of a product portfolio and they have cash. Valuation is in line with the market.

Amgen (AMGN-Q), Celgene (CELG-Q) or Biogen (BIIB-Q)? These are 3 great companies. His preference would be Amgen, the leader in the space and the dominant player. This one is a great example of a mega-cap company that has a lot of pent-up interest in one of their phase III’s. Alzheimer’s hasn’t had a great success rate in drug testing, but if it does come positive, you could see some great valuation.

(A Top Pick March 10/15. Down 39.56%.) For about 3 years Biotech was one of the leading groups in the market. He stays in positions as long as they work, and runs Stop Losses. In July, biotech as a group rolled over and he got stopped out at about $308-$310.