Issue #123, Volume #2
This Is Your Opportunity To Make Massive Gains As An Investor
This is Porter’s Daily Journal, a free e-letter from Porter & Co. that provides unfiltered insights on markets, the economy, and life to help readers become better investors. It includes weekday editions and two weekend editions… and is free to all subscribers.
| Trading for less than their cash… A once-in-a-lifetime biotech boom… Numerous 2x winners… The time is now… It only takes one to be life-changing… Kinsale reports – and falls… Company earnings are up… |
About 18 months ago, I gave you an extraordinary piece of advice.
I pointed out that since the lows of 2022, while tech stocks (like semiconductors) had rallied – the iShares Semiconductor ETF (SOXX) was up 67% in 2022 – biotech stocks were mired in the worst bear market the sector had ever seen. From February 2021 to early 2022, the main biotech ETF, SPDR S&P Biotech (XBI), fell 50%, marking the worst drawdown in its history. And by January of 2024, there were hundreds of small-cap biotech stocks trading for less than the value of the cash on their balance sheets.
I’d never seen a more valuable dichotomy in my career. And, in my typical fashion, I explained how this set-up was the easiest way to make huge returns: horse, meet water.
What was the response from my dear paid-up subscribers? Crickets.
While Biotech Frontiers, the biotech newsletter we launched with investment legend Erez Kalir, racked up huge win after huge win, we couldn’t give it away. Fewer than 50 people subscribed. A once-in-a-lifetime booming biotech rally was inevitable. We were going to put up ridiculous returns. No one cared.
Since then, as I knew he would, Erez has compiled our firm’s best track record with an average annualized return of 54.5%.
Here are some of his biggest winners…
- uniQure (QURE) recommended October 2024 – 237% gain
- Sagimet Biosciences (SGMT) recommended September 2024 – 185% gain
- uniQure (QURE) recommended January 2024 – 131% gain
- Sagimet Biosciences (SGMT) recommended January 2024 – 108% gain
- TG Therapeutics (TGTX) recommended July 2024 – 97% gain
- Prime Medicine (PRME) recommended July 2025 – 90% gain
- Kodiak Sciences (KOD) recommended January 2024 – 88% gain
Sagimet is up another 26% today.
I’m writing to you today for two reasons.
First, the opportunity in biotech that I first saw at the end of 2024 has grown even more extreme, as I’ll explain below. So even if you won’t follow Erez, you should at least invest in a biotech ETF, as biotech will outperform tech over the next five years.
And secondly, if you decide not to follow Erez… well…. I want you to go pound your head into a wall a few times until you come to your senses.
This is your opportunity to make massive returns as an investor in a major biotech bull market.
As my old friend Steve Sjuggerud likes to say: you only need one biotech bull market to become very rich. And that opportunity is staring you in the face right now.
Horse, meet water! Please!
Here’s What You Need To Know
Cumulatively, from January 2023 to October 2025, semiconductor stocks have returned 133%. There’s a huge tech rally that’s well underway. But… biotech? It’s hardly budged yet. XBI, the major biotech ETF, has only gained about 30% over the same period. Thus, semiconductors have outperformed biotech by more than 4x so far in this bull market. But, ironically, it’s in biotech where the incredible gains in artificial intelligence (“AI”) will be put to their most profitable use.
In other words, it’s only a matter of time before biotech catches up.
And that means, despite the rally in biotech we’ve seen this year, the opportunity today is now even better than it was when we launched Biotech Frontiers in January 2024. (Erez has expanded the domain of the newsletter to include science, the blockchain, and tech, and it’s now called Tech Frontiers.)
If you’re new to our business you might wonder why we focus so intensely on areas of the market (property and casualty insurance, distressed corporate bonds, biotech) few people understand. After all, we’re publishers… shouldn’t we publish content that people want to read, about topics they know well?
We focus on these areas of the market because it is in these “black box” businesses where we can deliver a substantial informational advantage to our subscribers.
Very few investors can understand a company’s entire capital structure and figure out which debenture offers the most value. But our lead Distressed Investing analyst Marty Fridson has been doing that very profitably for almost 50 years.
And even fewer investors read all of the major scientific journals, follow all of the most important clinical trials, and understand the market dynamics of new therapeutic products. But Erez Kalir studied biotech at Stanford and Oxford. He lives in the San Francisco Bay area and has personal relationships with many of the leading biotech scientists. That gives us a substantial advantage in this market.
Again, you can just invest in the biotech ETF and I’m sure you’ll beat the market. Biotech is going to do well over the next several years. But with Erez? You’ll make 50%+ annual returns for the next several years.
Remember: it only takes one biotech bull market to make you rich. And that opportunity is here right now.
Porter & Co. CEO Jared Kelly and Erez sat down to talk about the biotech bull market Erez saw on the horizon. The conversation is as relevant today as it was when they recorded it a few months ago. I highly recommend clicking here and checking it out for yourself…
Three Things To Know Before We Go…
1. September inflation report keeps the Fed on track to cut. This morning, the U.S. Bureau of Labor Statistics (“BLS”) reported that its consumer price index (“CPI”) rose 3.0% year-over-year (0.3% month-over-month) in September, versus Wall Street economist expectations of a 3.1% (0.4% month-over-month) increase. The weaker-than-expected data gives the Federal Reserve continued cover to cut rates again when it meets next week.
2. Crypto adoption accelerates. This morning, JPMorgan Chase (JPM) announced it will allow institutional clients to borrow against their Bitcoin and Ethereum holdings. Just as loans can be collateralized by stocks, bonds, or gold, this move recognizes Bitcoin and Ethereum as legitimate lending collateral. It marks a continued shift for JPMorgan and CEO Jamie Dimon, who once dismissed Bitcoin as a “pet rock” and underscores how deeply digital assets are being integrated into the traditional financial system. This latest step signals that high-quality crypto adoption is not only accelerating but becoming mainstream.
3. A banner quarter for corporate profits. Nearly 85% of the S&P 500 companies that have reported Q3 earnings have exceeded analyst estimates, the best “beat rate” since 2021. While analysts typically lower the bar by reducing earnings estimates ahead of reporting season, they broke with tradition and raised their forecasts going into Q3. That makes the outsized beat rate all the more impressive, and indicates significant earnings momentum for corporate America. S&P 500 companies are on track to increase earnings at a robust 12% year-on-year in Q3.
And One More Thing… History Repeats For Kinsale
Yesterday, one of our favorite property and casualty insurers Kinsale Capital (NYSE: KNSL) reported stellar Q3 results:
- Earnings per share increased 24.3%
- Written premiums increased 8.4%
- Investment income increased 25.1%
- Combined ratio of 74.9% (industry leading)
- Return on equity came in at 25.4%
And like clockwork, the stock… dropped… by as much as 7% this morning. Yes, dropped. If you’re a regular reader of Porter you know that Kinsale shares tend to drop, a lot, on the day the company reports – even if it’s positive news as it was yesterday. We recommend using these opportunities to add to your position.
Poll Results
On Wednesday, we did a market check with readers and asked: “Do you think the market tops in 2025 or booms into 2026?” It seems that the bulls have it… with 72% of survey takers selecting the option “The S&P 500 is higher on January 31, 2026, than on December 31, 2025.” And 28% selected the other choice: “The S&P 500 is lower on January 31, 2026, than on December 31, 2025.”
Tell me what you think of today’s Daily Journal or anything else that is on your mind: [email protected]
Good investing,
Porter Stansberry
Stevenson, Maryland
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