If you're a subscriber of my $100,000 Real-Money Portfolio, then you know I've been focusing on stocks that have the potential for serious multi-year gains. By definition, this means stocks that are out of favor right now. And in the face of a tough stock market this spring, many have them have stayed out of favor.
The portfolio is off roughly 7%, but I'm undeterred because I know I own a basket of compelling long-term opportunities and expect my patience to be rewarded -- handsomely.
The key for these stocks is to start delivering on the thesis I've laid out for them. As an example, I was early to the game with my pick of battery maker Exide Technologies (Nasdaq: XIDE), as the company went on to offer another dismal quarter after I bought it. Yet Exide has begun to turn the corner, with shares beginning the month trading at just $2.30, but since rallying 35% to above $3. I'm still underwater with this pick, but I expect the company's turnaround efforts to slowly being recognized by more investors, eventually getting this stock back above $5, where it stood last summer.
The FDA validates this biotech stock
Another pick in portfolio is showing signs of life as well. Shares of Ligand Pharmaceuticals (Nasdaq: LGND) are up more than 20% this week on word that the Food & Drug Administration (FDA) is likely to approve the drug carfilzomib when it votes on July 27. This is a blood cancer drug being developed by Onyx Pharmaceuticals. (Nasdaq: ONXX), which traded up a hefty 40% on the news.
Why is this good news for Ligand?
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