As if the market reaction to the war in Ukraine were not enough, global stock markets have been smashed in an apparent in a hissy fit at rising US inflation and the possibility of sharply higher interest rates. Action today on the ASX was reminiscent of the market meltdown that took place in the GFC.
The last few months has seen technology and biotech stocks get pounded and action in recent days has been worse again. Today saw Mesoblast smashed down 10%; Southern Dental Industries surrendered 8% and IDT approaching it’s 52 week low, down 7%.
Of course for every ying, there is a yang. Depending on you’re point of view, some stocks may be approaching bargain territory.
What I have been buying.
A few weeks ago I noticed the highly respected chairman of Melbourne based, Polynovo, began to purchase PNV shares for his, and his wife’s, personal super account. These purchases were via on market trades. and began when the stock was trading at just below 90c/share.
As I had been a PNV shareholder for a few years I was already familiar with the company and it’s outlook. so I jumped in to quadruple my existing, relatively small holding. Since that time Mr Williams has continued to add to his holdings which has seen the share price hold up in recent weeks.
Watching, waiting.
There’s a number of technology and biotech stocks I’m currently watching. As it’s off topic, I wont go into the tech stocks but I will way I have been watching couple of biotech stocks very closely. About a year ago I purchased a very small holding in a company that has since found success in a phase 3 clinical trial. That company is called Neuren Pharmacuticals.
The phase 3 success was in the treatment of a rare condition, Rett syndrome. Neuren’s partner, US based Arcadia Pharmaceuticals conducted the trial and has flied for approval for the product with the American FDA. That result will see Neuren swing sharply into profitability.
The company is well down on it’s post phase 3 highs. I’m not buying yet but i’m watching closely for further weakness.
Another stock to pique my interest is Orthocell. This regenerative medicine company already has product approvals in place in a number of jurisdictions, all it needs now is the cash flows to match. For the time being I’m just an observer.
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