• Subscribe
  • Log In
  • Home
  • Daily Diary
  • Asset Class
    • U.S. Equity
    • Fixed Income
    • Global Equity
    • Commodities
    • Currencies
  • Sector
    • Basic Materials
    • Consumer Discretionary
    • Consumer Staples
    • Energy
    • Financial Services
    • Healthcare
    • Industrials
    • Real Estate
    • Technology
    • Telecom Services
    • Transportation
    • Utilities
  • Latest
    • Articles
    • Video
    • Columnist Conversations
    • Best Ideas
    • Stock of the Day
  • Street Notes
  • Authors
    • Doug Kass
    • Bruce Kamich
    • Jim Cramer
    • Jim "Rev Shark" DePorre
    • Helene Meisler
    • Jonathan Heller
    • - See All -
  • Options
  • RMPIA
  • Switch Product
    • Action Alerts PLUS
    • Quant Ratings
    • Real Money
    • Real Money Pro
    • Retirement
    • Stocks Under $10
    • TheStreet
    • Top Stocks
    • Trifecta Stocks
  1. Home
  2. / Investing
  3. / Healthcare

Take a Chill Pill: If Clinton Wins, Drug-Price Controls Aren't Guaranteed

Such unwarranted fears have depressed the sector, which could bounce back after Nov. 8.
By JAMES "REV SHARK" DEPORRE
Oct 31, 2016 | 02:09 PM EDT
Stocks quotes in this article: CELG, PETX, GBT, TRIL, ARRY, AREX, HDSN

The indices are close to flat, breadth is slightly positive and pockets of positive momentum are nearly nonexistent. It is downright tedious if you are trying to put some money to work, but it's a great environment for productive waiting. This is the time that you should be plotting and planning some trades. You don't act now. You just start thinking about how things might develop and how you will handle some trades if you have the opportunity.

There are two groups that I'm watching closely. The first is biotechnology. One of the main market themes of the election season has been that, if elected, Hillary Clinton is likely to press for price controls on drugs. This has caused pressure on a wide swath of pharmaceutical and biotechnology stocks.

In many cases the logic is deeply flawed. While there are some bad actors that have raised drug prices to unconscionable levels, there are many biotechnology names where pricing isn't even a meaningful issue in their development. Even if Hillary Clinton were to win, there is no assurance that drug-pricing changes will be as onerous as the market seems to think or that they even will occur. These stocks are likely to come back as the election results cool off and Washington, D.C., goes back to the business of doing nothing very meaningful.

Some of the names I like in this sector include Celgene (CELG) , Aratana Therapeutics (PETX) , Global Blood (GBT) , Trillium Therapeutics (TRIL) and Array Biopharm (ARRY) . There are plenty more but these are on my radar and will the first names I like at once the election results are in and the issue of drug pricing fades away.

Another group that I will watching is oil. Oil is under pressure as the latest OPEC deal falls apart, but there has been some improvement in small-cap oil and gas names, and I'm looking for some opportunity there as the political landscape shifts again. One low-priced stock that was looking good until the last couple of days is Approach Resources (AREX) . That needs to recover the $3 level before it would be interesting.

A stock I mentioned previously that may benefit from a change in politics is Hudson Technologies (HDSN) , which is an environmental play. It is doing nothing right now, but I'll be watching for improvement.

This market is not at all interesting, but the opportunities are developing and now is the time to start thinking about them.

Get an email alert each time I write an article for Real Money. Click the "+Follow" next to my byline to this article.

At the time of publication, RevShark long CELG, PETX, TRIL, ARRY, AREX AND HDSN, although positions may change at any time.

TAGS: Investing | U.S. Equity | Healthcare | Politics | Stocks

More from Healthcare

Let's See How These Three Dividend Aristocrats Stack Up

Chris Versace
Dec 10, 2019 11:30 AM EST

Two food-related names and one in health care look like promising investments right now.

Cooper Cos. Can Rally Further After Some Sideways Consolidation

Bruce Kamich
Dec 5, 2019 2:42 PM EST

Time to review the charts and indicators.

This Dividend Stock Is Tipping the Scales for Investors

Chris Versace
Dec 5, 2019 2:08 PM EST

As more Americans struggle with obesity, Medifast sees strength in weight-loss offerings.

Avita Medical Could Double in 2020 but Not Without Risk

Bruce Kamich
Dec 5, 2019 9:53 AM EST

A 'promising' stock.

Raise Stops on NovoCure

Bruce Kamich
Dec 4, 2019 2:55 PM EST

NVCR's prices are poised to head higher in the months ahead.

Real Money's message boards are strictly for the open exchange of investment ideas among registered users. Any discussions or subjects off that topic or that do not promote this goal will be removed at the discretion of the site's moderators. Abusive, insensitive or threatening comments will not be tolerated and will be deleted. Thank you for your cooperation. If you have questions, please contact us here.

Email

CANCEL
SUBMIT

Email sent

Thank you, your email to has been sent successfully.

DONE

Oops!

We're sorry. There was a problem trying to send your email to .
Please contact customer support to let us know.

DONE

Please Join or Log In to Email Our Authors.

Email Real Money's Wall Street Pros for further analysis and insight

Already a Subscriber? Login

Columnist Conversation

  • 10:10 AM EST BOB LANG

    Banking a Big Winner in SRPT, Rolling Up

    Nov. 20 here on the CC, I mentioned buying some Ma...
  • 10:36 AM EST GARY BERMAN

    Fibocall: How High Can Crude Go?

    On crude: I am looking for higher, but please b...
  • 08:20 AM EST BOB LANG

    Webinar Time - Talkin' Calendars, Butterflys

    join me later today after the market close as we t...
  • See More

COLUMNIST TWEETS

  • A Twitter List by realmoney
About Privacy Terms of Use

© 1996-2019 TheStreet, Inc., 14 Wall Street, 15th Fl, NY, NY 10005

Need Help? Contact Customer Service

Except as otherwise indicated, quotes are delayed. Quotes delayed at least 20 minutes for all exchanges. Market Data & Company fundamental data provided by FactSet. Earnings and ratings provided by Zacks. Mutual fund data provided by Valueline. ETF data provided by Lipper. Powered and implemented by FactSet Digital Solutions Group.

TheStreet Ratings updates stock ratings daily. However, if no rating change occurs, the data on this page does not update. The data does update after 90 days if no rating change occurs within that time period.

FactSet calculates the Market Cap for the basic symbol to include common shares only. Year-to-date mutual fund returns are calculated on a monthly basis by Value Line and posted mid-month.

Compare Brokers

Please Join or Log In to manage and receive alerts.

Follow Real Money's Wall Street Pros to receive real-time investing alerts

Already a Subscriber? Login