We asked you to select the top performing healthcare stock for the week Monday 23 March to Friday 27 March – out of a list of stocks trading above $0.50 a share.
And we have a winner – Mr F. Jamieson from Essendon, VIC, who chose Sigma Pharmaceuticals with a target price of $1.145, which was right on the money with Sigma Pharmaceuticals closing last week at $1.145. His exact pick held out two other unlucky stock pickers with target prices of $1.14 and $1.15. Let’s hope they backed their own pick last week.
Jamieson’s reason for selecting Sigma was that their profit guidance would be ahead of expectations: “SIP is a solid company that has been oversold off due to uncertainty running through the market and it should head north next week, mostly because profit guidance will be better than expected. This should send it higher – let’s go to $1.145”. And Sigma Pharaceuticals did head higher, increasing by a solid 17.4 per cent over the course of the week.
An impressive 11 per cent of TheBull subscribers chose Sigma Pharmaceuticals from the list of 30 stocks. One subscriber, who was only half a cent off the mark wrote: “Sigma. The market has over reacted to Sigma on the downside and an uptick in general market sentiment (albeit irrational) will lift the price to $1.15.”
Another subscriber said: “I’ve never looked at health stocks before and I certainly didn’t know there was quite so many. SIP might have a chance at advancing forward now that the XAO has gained for the last 10 days and is due for a fall, the fear will grab the market and the health stocks should rise again or at least not fall too much.”
The second best performing stock for the week was USCOM (UCM) up 15.0 per cent, followed by Primary Health Care (PRY), up 13.8%, Blackmores (BKL), up 9.1%, and Peplin Inc. (PLI), which also rose 9.1% over the week.
In another strong week for the Aussie market, 70% of the 30 healthcare stocks in the list ended the week higher – with 10% shooting up by more than 10% – and 20% were lower.
Note that there are two shortened weeks due to the Easter break, so stay tuned for the next tipping competition.
More articles in this week’s newsletter