Post by savzak on Mar 3, 2015 10:12:56 GMT -5
247wallst.com/healthcare-business/2015/03/03/4-biotechs-expected-to-see-huge-buying-on-powershares-rebalance/
4 Biotechs Expected to See Huge Buying on PowerShares Rebalance
By Lee Jackson March 3, 2015 8:25 am EST
All the major money management firms that run exchange traded funds have to do regular quarterly rebalances to reset their portfolios to the proper allocation levels. When they do rebalance their holdings, it can introduce some big volatility to some of the stocks in the portfolio.
On the close Tuesday, Invesco will rebalance 15 of the firm’s PowerShares portfolios, which cover many of the major market sectors. A research note from the analysts at Cowen highlighted the top rebalance stocks by liquidity. We screened those stocks for the companies that would see the most amount of buying on a share basis, and four biotech companies stood out.
MannKind Corp. (NASDAQ: MNKD) is expected to see a massive buy of 2,230,300 shares of stock, which represents 40% of the 10-day average trading volume. The company has been an incredibly volatile stock over the past few years. MannKind finally launched its inhalable insulin product, which has been on the burner seemingly forever. The company’s marketing partner Sanofi has reported that demand has been higher than expected and that the sales force needs more samples for physicians.
The Thomson/First Call consensus price target for the stock is $8.66. Shares closed trading on Monday at $6.64.