While corporate insiders and Wall Street analysts wave the caution flag by selling way more than buying, retail investors have never been more euphoric. We look at how that plays out across The Big Secret portfolio.
In this issue, analyst Erez Kalir focuses on a Big Picture inflection point that he says is crucially important for biotech holdings as well as every other investment in an investor’s portfolio.
When interest rates go up, bond prices go down. Most segments obey that rule, by falling in price, as the benchmark 10-year Treasury yield rose. But not distressed bonds.
With shares trading up more than 100% from our entry price, we are recommending selling a half position in Peloton Interactive (Nasdaq: PTON). In our initial report on Peloton, “A Change of Gears,” dated October 11, 2023, we recommended purchasing Peloton’s 0% coupon bonds coming due February 15, 2026. At the time these bonds were
It would take medicine almost 100 years to translate a Nobel Prize winner’s “magic bullet” to fight cancer into reality. Now, in the past few years, the fruits of his research have emerged as one of the hottest areas of cancer medicine… . . . and of biotech deal making.
Regardless of what changes an incoming Trump administration might implement, we believe it’s only a matter of time before greed shifts to fear, and prices fall by 50% or more. Those who raise cash now will be in a position to buy world-class businesses at bargain-basement prices.
When investing in distressed debt, be very selective about which distressed bonds you buy. Buying a market basket of assets – a quick, efficient way of adding to equity holdings – is not a smart alternative with distressed debt.
Global interest-rate cuts have sent share prices toward all-time highs, along with many of the names in The Big Secret on Wall Street portfolio. Our commodities holdings in particular have benefitted from this rate-cutting environment, with the shares of our coal, oil, and mining related companies posting double-digit returns over the last month.
Our recommendation this month is a company on the vanguard of gene therapy, with several transformative medicines in its pipeline. Best of all, this company trades at a negative enterprise value, making it a compelling value – beyond its scientific promise.
This week we report on a one-time railroad company that has become one of the greatest success stories in American finance – finding capital efficient ways to generate new revenue and maintaining 60% profit margins for decades.