Stop triggered on PureTech Health – plus two updates for the portfolio
20th September 2019 |
Original Buy price: 155.75p
Sale price: 250p
Profit: 60.5%
There were two price monitoring alerts on PureTech Health this morning and it dropped back to trigger our stop at 250p.
The only news I have seen is that the chairman has had to resign because he was head of the MIT Media Lab and the optics were not appealing that he had allowed the university accept money from Jeff Epstein. He is being replaced by a former CEO of Sanofi so I don’t see that as a big reason.
I suspect the more relevant point is that there were other stops in the market and some selling triggered a decline, which in turn punctured out stop.
We exit the position with a 60.5% profit.
Our original reason for buying the share was because of the leverage it offers to the microbiome. This is an incredibly exciting area of research so I will be on the hunt for another way of gaining exposure to this theme.
Alkane Resources
Alkane Resources released an alert 10 days ago that they have found new gold. The company’s chairman subsequently bought 2 million shares to supplement his holdings. That lends credence to the view that the company has access to impressive new resources which can be deployed in furthering its rare earths business.
The price is moving rather quickly and we are currently sitting on a profit of 121.3%. I will take a profit on the share on the first clear evidence of selling pressure but not before.
Oxford Biomedica
Oxford Biomedica has a disappointing earnings season and that saw some stops triggered at 600p. However, the share is now rebounding and the outlook for the company’s revenue is more positive in the back end of the year when revenues from its bioprocessing services for Novartis should be kicking in.
The share needs to confirm a move back above 600p to confirm a return to demand dominance but I think there is a good chance it will get there.
All the best,
Eoin Treacy
Investment Director, Frontier Tech Investor.
