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Friday, August 10, 2012

Is the cell therapy sector outperforming the major indices?


So here's what I did today.  I built a portfolio of public companies focused exclusively or predominately in the cell therapy space.  I excluded any companies that are in the sector but their products/services constitute less than a significant majority of their revenue and/or expenses.  The portfolio sits at 29 companies.  Here's the list:

Here's how the portfolio performs against the Dow Jones, Standard and Poor's, and NASDAQ indices so far this year.

When looking at the period 1 January 2012 to 10 August 2012, the cell therapy portfolio is up 42%, Dow Jones up 8%, Standard and Poor's up 12% and NASDAQ up 16%.

In the context of how much we hear about how harsh this sector is or has been on investors, I found today's analysis interesting and, honestly, pleasantly surprising.

This snapshot is useful but has its limitations. I'm relying on Google Finance for accuracy of the information provided.  Do your own due diligence. Invest accordingly.  I hope this helps.


This snapshot has been brought to you by Cell Therapy Group: all cell therapy, all the time! :)


Hemu said...

Looking good..!! I am just wondering, if there is a way to publish this portfolio tracking page on your blog, so people can track it real time starting from now.



Therapy sites said...

This is good. It's nice for having this portfolio. By the way, thank you for sharing this. I appreciate it. I'm glad that you'd come up building this portfolio. Great post!

Dr.Rodriguez said...

hi Lee,

Thanks for compiling that! Did you know that
you can create a trackable index at TickerSpy? A few years ago one was created for Stem Cell Stocks. Here it is:

You should consider posting yours there. Just for fun, a couple of years ago I created a PHAT index (~emphasis on adipose) using TickerSpy:

In February I attended Robin Young's 2012 Annual New York Stem Cell Summit. He referred to the aggregate market cap of the Stem Cell sector as the 'darkness before the dawn' . I wrote about the
7th Annual Stem Cell Summit in our blog.

According to Robin Young, at the end of 2011, the entire Stem Cell Sector market cap was only $3.4 Billion. Think about how crazy that is! Ten kids in a garage with a new social media platform and get a buyout offer for more than that!!

BTW-Is your index a market cap weighted, or price weighted index? As you probably know, Nasdaq index is market weighted and that is the ideal. However, DJIA does it by price weighted method.


Leeza Rodriguez said...

Whoops--I selected Google (thinking G+) but it signed me in with Ricardo's old blogger account.
Sorry about that.

Lee Buckler said...

Thanks Leeza. So I'm using Google Finance. I've tried to find a way to share it but I can't. I'll admit I'm not the biggest Google wizard. Maybe you can help?

I've started a portfolio now on Tickerspy - thanks for the tip - but it also seems to have its limitations because it seems to only chart from the date you build the portfolio (not retrospectively).

As for my Google Finance portfolio, its says

"Chart details for portfolios without dated transactions (just a watchlist): If your portfolio native currency is USD, the assumption is made that you spent $10,000 on the stocks in your watchlist exactly one year ago. The initial investment is spread evenly over the stocks, so the actual number of stocks may vary widely. If your portfolio native currency is something other than USD, the initial investment is $10,000 USD converted to the native currency based on today's exchange rates."

I have no idea whether that means it is "market cap weighted" or "price weighted".

I'll add a link to my TickerSpy portfolio once it starts showing a chart (I assume 1 week from adding it?).

Lee Buckler said...

Ok now the chart is showing so here is a link to the same portfolio (except I added KOOL) on Cell Therapy Portfolio

Lee Buckler said...

As of August 31, the Google Finance portfolio (detailed above) is doing even better. Here are the numbers calendar year-to-date:

Cell therapy: +61%
Dow Jones: +7%
S+P500: +12%
NASDAQ: +18%

Lee Buckler said...

Today the CT sector portfolio is up 75% YTD, Dow Jones 11%, S+P 16%, and NASDAQ 21%.

On TickerSpy the 1-month data shows the CT sector portfolio up 11% and S+P500 up 3%.