Who says momentum investing is dead?
There are those that say the partying of 2013 will end with a hangover in 2014. Leading the way lower or at best sideways will be the former momentum stocks of last year.
What a bunch of party poopers.
One sector where those with a proclivity to risk will have their fun is the biotech industry.
Case in point is Intercept Pharmaceuticals (ICPT). The little biotech company specializing in treatments for liver disease exploded in a wave of momentum last week.
The stock jumped an amazing 500% in just two days of trading after reporting encouraging trial results for its OCA drug.
Talk about the Holy Grail of momentum investing. The Intercept story is so impressive that not even a whack of 35% or more the next week can knock the bloom off the rose.
Now the hunt is on for more. Investors are scouring the biotech landscape looking for the next Intercept. The action is sure to bid up shares across the board.
Given that predicting monster drugs coming to market is a crapshoot at best, investors can either gain exposure to the group with an exchange traded fund or roll the dice on a select few biotech stocks.
If you want to swing for the fences, here are three names in the biotech space that have the potential to attract the momentum investors in a big way.