Update on Exelixis, Inc. (EXEL)


As I posted on my earnings update a few days ago, I was bullish and still bullish with the prospect of EXEL. There is no denying about it. You can again read my update that I posted on my blog regarding "Technology companies earnings update". If you did not read it please read or read it again! 

I am invested in EXEL and keep adding with the correction. If you are fully invested then there is reasons to be panicked but if you are not you can view it as an opportunity to accumulate. But how long can you do so? It all depends on how much already invested in it and how much risk you can take. That’s the reason I say, never get over invested. Nothing is sure in life and particularly biotech stocks. It can rocket higher or come back to ZERO. But in case of excel, they blasted the revenue and earnings expectations during their last earnings. So why is it still down? Because there were one or two failures in their drug trials. The company has more than 30-40 drugs in pipeline and collaborations. So there may be some failures as well. Personally, I thought it as an opportunity and have been adding some long term call options. I may sell some portion of the stock/call options from my trading account and possibly take some capital loss, if required. But I am positioning for long term as I still believe in the company and its prospects. I may be wrong! But that’s my take. Every investor should do their homework and take their own decision on what to do or what strategy do you follow. I still think hat EXEL has a good prospect in longer term. But for short term, it’s difficult to predict. If any investor can't absorb volatility then it's better to stay away from biotech. But I believe on this sector for long term and will keep investing/trading as long as I feel it right! I have said that EXEL may get acquired someday and I am still believe that it could happen sometime though I may be wrong. 


In a speech by Donald Trump last Friday, there were not much negativity resulting biotech stocks to rally. Moreover, visualizing that ASCO conference is scheduled for June 1st week, it's likely that the sector may rally further with the anticipation of some breakthrough news. ASCO is one of the most sought after conference for biotech industry. So, I will keep a very close eye on this.

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