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.

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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.

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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, KRN5500, 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.

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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.

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