Back again

Another prolonged interruption – this time I am blaming travel over Christmas followed by nasty bugs suffered by everyone in our house. All seem well at the moment but with a toddler involved it seems like a bug is always around the corner.

My last update was on December 12th – just before we all got on a plane to jet off for Christmas holidays. There has been some action on the portfolio since then and given that today was a good day (and it has been a good week) I thought I would resume posting.

HEB: I opened a position in HEB on Dec. 12th. This was a risky trade. The stock had already appreciated quite a bit over the preceding 6 months (starting July at $0.26 and hitting $1.10 in late September. I thought there was a decent chance for a pop ahead of the FDA Advisory meeting on the 20th. In the end I offloaded the stock at the open on the 17th (a Monday). I was nervous about this all through the weekend and wanted to make sure I was out before the briefing documents were released ahead of the meeting on the 20th. The notes were released the next day and the price dropped ~50%.

RPTP: I started my RPTP position in late November buying in at $4.80. I sold half of the position on December 20th for $6.02 (25% gain). I am still holding onto the rest of it having missed opportunities to get out at prices as high as $6.25. It is currently at $5.40ish and represents about 10% of the portfolio value.

PATH: I got out of this on 1/3/13 for $3.39 I entered at 3.06 so this was an 11% gain. It seemed to be stalled ahead of the PDUFA and I was feeling unwell so selling was the way to go.

There followed a period of zero activity up until last week when I made some additions.

DEPO: I added a 25% position in DEPO on 1/23/13 at $6.25. The company has a PDUFA date in late may for Serada, a drug to treat “hot flashes” associated with menopause. As of today the position is up 12% with DEPO closing at $7.01.


DCTH: I also added Delcath on 1/23/13 – at $1.42. DCTH has a PDUFA date of 6/14/13 for its injection system to treat unresectable melanoma liver metastases. As of today’s close the position is up 6% at $1.51.


DARA: I have been watching Dara Biosciences for a few weeks and decided to start a position this morning. I got in at $1.05. The company has closed as high as $2.60 within the last year. Investors are waiting for news of the FDAs decision on whether to treat its candidate,┬áKRN5500, as an orphan drug. March seems to be the generally accepted timing for this news. The stock has moved quite a bit recently but should have room to advance some more ahead of the FDA’s announcement.


So that is the update on the holdings. As I mentioned, today was a good day with the portfolio’s value increasing by 4% on a day for which the NBI was up 0.3% and the NASDAQ was flat. The portfolio is up ~11.5% for its 2nd year (starting on November 28th, 2012). The NASDAQ and NBI are up ~5% and 6% for the same period.