For healthcare names, we continue to like $LGND, and have been adding to $OREX, and microcap $INSV.
We have also started a new position over the last few sessions: $AMRN. The drug is now approved and they have a patent, but the price is far lower than it was when neither of these were true. Trading what we see, and would be gone before $7.50. But we think much of the M&A hype and then tax lose selling has been crushed out of it. So as short's cover, a sprint to the $10 mark is not out of the question. And once there, could trigger a gap fill rally to $12, which would be a challenge to the falling primary upper resistance trend line. We note they just got a reiteration for overweight by JP Morgan last week and are now to speak at the JPM conf next week.
Got burned by $HEK in 2011, so was very glad we had sold long before 2012. As such, we advise caution there. On further review, the problem is - and if you do your homework you may see - drilling for dry gas is nearly at a standstill. Land based rig counts were actually falling last year. There is so much supply even at these depressed prices, that wells are being shut in and NG is being flared off may wet wells. As such, we favor nat gas play that benefit from the glut, not suffer by it. Pipeline and storage MPLs, and users of Nat Gas (utilities converting from coal, chemical plays that use NG as feed stock like $EMN and $CLMT, NGV parts co like $FSYS and $QTWW (though admittedly these are true specs), and our sole NG export play $LNG). Not saying $HEK will not rise. But as a service provider to fracking cos who are in turn under margin pressure, we see it will under perform those actually benefiting from the glut of Nat Gas - which $HEK is not one (nor are the drillers or E&P plays). For $HEK to outperform, they need new EPA and state level regs that mandate increased frack water recycling. But even then, the economics will rule. Currently there is a lot of NG coming as a byproduct of fracking for oil. Yes, $HEK plays in the oil fracking too (and the purchase of Power Fuels should help there) but we are unclear if business will organically continue at the recent past rate, rather than being pumped up by acquisitions.