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Well, well, well… news hit the market today that Pfizer (PFE) says its vaccine test is ninety percent effective.

That turned out to be great news for the market— the S&P 500 and Dow opened up at all time-highs.

It turned out to be really bad news, though, for some of my most loved trending digital stocks of the past 8 months.

Peloton (PTON), Zoom (ZM), Chewy (CHWY), and Pinterest (PINS), I’m looking at you. They put up average losses of ten percent by midday today— good thing I wasn’t holding them!

It’s not a whole big surprise why. The Pfizer news is a pretty good indication of things moving away from keeping people out of gyms, offices, and retail stores.

Whether or not it’s time to buy the dip on these stocks remains to be seen. But personally, I’d much rather trade the market where it’s at right now.

Right now, what’s hot on my watchlist is newly public companies within the biotech and medical devices sectors. They’re getting sympathy plays from PFE, which was up over ten percent today.

So let me show you 3 PFE sympathy plays I’m watching, which are poised to ride some strong momentum.

 

Frequency Therapeutics (FREQ)

 

  • Frequency Therapeutics is a clinical-stage biotech directed towards treating a range of degenerative diseases, through an emphasis on the body’s innate ability to repair or reverse damage

  • The company currently has in development a therapy, FX-322, aimed at treating hearing loss, a problem that has become more and more prevalent throughout the world. Hearing aids are a $10B market at the moment.

  • Phase 2 trial results of Frequency’s flagship FX-322 product are impending— and though speculative, a positive outcome would be a nice boon for traders. Enrollment for the trail ended on September 22, and end-of-study results are anticipated in late Q1 2021, according to a recent announcement

  • Frequency’s FX-322 is like the Lasik eye surgery for ears— in just 5 years, Lasik went from 0 to 1.4M surgeries. Frequency could enjoy similar rapid adoption if the trial results are effective

  • FREQ is currently pushing against a resistance level of $25. I’ll be interested in getting long on the stock above that level for a move past all time highs of around $28, ahead of trail results

 

 

BridgeBio Pharma (BBIO)

 

  • BridgeBio is a biotech focused on creating therapies for patients, children especially, with unique genetic diseases.
  • Although the Q3 earnings results on November 7 were not as good as hoped— revenues fell 5% short of estimates— they weren’t dismal either. The stock seemly shrugged it off during today’s trading, a positive overall sign
  • Analyst updates are nevertheless positive, forecasting 295% revenue increase, given new expectation that the company will grow faster in the coming year than the past. Estimates for the industry as a whole are around 20%
  • BioBridge has a range of trials in the pipeline for products across its mendelian, targeted oncology, and gene therapy programs. That includes a study underway for BBP-589— a protein replacement therapy— in which six patients will receive doses of the drug.
  • BBIO has been consolidating in a narrow range, but demonstrated strong growth in September. I’ll be looking to see if the stock can break past all-time highs at $42, for a nice ride higher

 

 

ShockWave Medical (SWAV)

 

  • ShockWave is a company that sells coronary and plaque reduction systems. Essentially, they are medical devices, which allow sound or acoustic waves to break up calcification in our arteries.
  • On November 7, positive clinical trial results emerged that revealed data from the Disrupt PAD III study. It showed their Intravascular Lithotripsy (IVL) treatment to be superior to the percutaneous transluminal angioplasty (PTA) treatment.
  • Though the trial is completed, SWAV just broke past all time highs and I anticipate there could be more gas left in the tank.
  • SWAV has been a strong growth stock since March and has shown very little downside, with the exception of the second half of October. The stock could move into the mid-80s.

 

 

Learn How I’m Trading New Public Companies

 

FREQ, BBIO, or SWAV all conducted their IPO within the past year.

I’m expecting to see some big IPO trading opportunities coming up, regardless of whether I decide to trade these names specifically.

Already this year, we’ve seen over 170 initial public offerings, and the Renaissance IPO ETF is up 76% year-to-date. That’s over 9 times the growth of the S&P 500!

In October, I took triple digit gains on 10 newly public companies.* I’m anticipating seeing similar success in November.

If you want to join me, take advantage of my special quarterly price, with no long-term obligation, to test drive IPO Payday for the next 3 months.

 

Author:
Ben Sturgill

Ben leads two services at RagingBull. IPO Payday can help you pinpoint, position, and profit from IPOs. In Daily Profit Machine Ben guides day and swing traders to profit by trading the SPY Index. Ben hosts the RagingBull.com podcast where he shares thoughts on wealth and success with traders, businesspeople, entrepreneurs, and experts to uncover and share some of the wisdom needed to live a successful life.

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