Igor asks:
I am curious what you think would be the best strategy around SVNT. You mentioned that nothing will likely to happen for the next three quarters. Will it continue bleeding and it is better to cut losses now or wait for it to go up after the initial reaction to earnings?
I think that my updated target that I shared this weekend (6) is a good clue as to what I am thinking for now. Given the extreme weakness in many stocks, I think that we will get an opportunity in Top 20 to sell SVNT, which is pretty oversold now, to buy into another name. Given that it is only just over 1% of the entire portfolio and that I don't expect it to keep dropping like a stone, I don't feel compelled to address it in the model immediately. If you were to own a larger position, then that's perhaps a different question. The circumstances for the stock began changing 3 months ago and got slightly worse this quarter (as far as when real sales show up). The circumstances for the market are probably the bigger concern at the moment, as small-cap biotechs don't fare well at all in bear markets typically.