Celgene Falls on Profit Booking, IBB Large-Caps Fall by 0.5%



IBB large-caps fall by 0.5%

The large-cap stocks of the iShares Nasdaq Biotechnology ETF (IBB) fell by 0.5% on December 28, 2015. They outperformed IBB itself but underperformed the SPDR S&P 500 ETF (SPY). IBB and SPY gave returns of -0.75% and -0.25%, respectively.

IBB’s large-caps account for ~69.3% of its portfolio. As of December 28, 2015, IBB had 15 large-cap stocks in its portfolio. Out of these 15, 11 stocks gave negative returns, and four stocks gave positive returns. IBB’s large-caps include stocks such as Shire (SHPG), Grifols (GRFS), and Mylan (MYL), which gave returns of 0%, -1%, and -0.9%, respectively.

The above graph reflects the performances of IBB’s large-cap stocks in comparison with IBB and SPY. From the start of December 2015 to December 28, 2015, IBB’s large-caps have returned 2%, IBB has returned 1.2%, and SPY has returned -1.6%.

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Celgene slumps on profit booking

Celgene (CELG) fell by 2.5% on December 28, 2015. The stock fell on profit booking after it closed at $122.07 on December 23, 2015, on the news of its settling a patent litigation. CELG recorded trades of ~4.1 million shares as compared to its three-month average of ~5.1 million shares per day.

CELG closed at $119.10 and was trading above its 20-, 50-, and 100-day moving averages. Year-to-date (or YTD), CELG has given a return of ~6.5%. CELG has an RSI (relative strength index) of 58, indicating that the stock is neither overbought nor oversold.

CELG has a trailing-12-month price-to-earnings ratio of 59.85x. The book value of the stock is $6.83 per share. With its current price, the stock is trading at a price-to-book value of 17.44x. CELG has a weight of ~8.0% in IBB’s portfolio.


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