Investment fans will be watching closely to see how biotech performs in NASDAQ’s version of March Madness. What is clear until now is that biotech has been in some sort of a flame and there is no doubt the fans are fired up, but the question remains whether biotech will trounce solar energy rivals.
For the March Madness, NASDAQ has some 150 people at its offices around the world. The people have been put into eight sector groups or teams. Each of the eight sector teams has five stocks.
Selection for enrollment into the eight sectors for March Madness contest was based on various aspects of the market. For example, the sectors were picked based on such things as composite ranking for the 4Q trading performance, new shareholders in 4Q, trading performance in January and February and 4Q net growth capital inflows.
Biotech in the contest
Based on the above selection criteria, biotech/healthcare industry is making its way into the March Madness contest. The composite ranking of biotech was No. 6, which makes the sector eligible for eight team tournament. Also in the contest is solar energy industry. Each of these two sectors have the potential for high-percentage shots, so the issue is whether biotech will be able to come from behind in the tournament to beat solar yield.
Biotech vs. solar yield
According to the solar team, yield companies have the potential to post solid growth in the long-term and also outperform the broader utility sector. On the other hand, biotech thrives on positive regulatory announcement and data release. One big announcement from a biotech name could be enough to give the team something like 18-2 lead over rivals. Perhaps that explains why biotech aptly describes themselves as the data and regulatory announcement team.
NASDAQ has not been able to disclose the five companies in each of the eight teams. However, the winners in the first-round will be announced after seven days of trading. After the first-round next will be the final four and then a championship that will be held on a single trading day on April 6.
There is no money at stake in the tournament, but there will be some rewards and bragging rights.