Here’s What Mott Capital Management Thinks About Netflix, Alkermes, Vodafone & More

As stated earlier, Alkermes Plc (NASDAQ:ALKS) was one of Mott Capital’s top winners in the fourth quarter, as the stock gained over 18%. However, this growth only offset the stock’s full-year losses, which still amounted to nearly 30%. The company’s shares lost ground due to investors’ concern about drug pricing, which affected the entire biotech industry. Nevertheless, Mott Capital is still bullish on Alkermes Plc (NASDAQ:ALKS), which has been showing strong revenue growth of Vivitrol, its opioid addiction treatment.

“I have very high hopes for Vivitrol, as there are only two other medications on the market to treat Opioid Addiction, Methadone, and Suboxone. Vivitrol offers some key benefits, the most obvious is that it is a monthly injectable. Methadone and Suboxone are medications that need to be taken daily. Vivitrol has a minuscule market share, and I expect for that share only to grow as rehab center become more educated on the benefits of Vivitrol,” the fund said.

There were 24 funds in our database that amassed around 9.20% of Alkermes Plc (NASDAQ:ALKS)’s outstanding stock at the end of 2016, up from 22 funds a quarter earlier.

Vodafone Group Plc (ADR) (NASDAQ:VOD) is another loser from Mott Capital’s portfolio, as its stock dropped by over 24% last year. Mott Capital blamed the decline of the stock on the weak performance of the British Pound, as Vodafone’s stock on the London Stock Exchange declined by only 10%. However, Mott Capital thinks that the short-term currency headwinds “should turn to tailwinds” as Vodafone Group Plc (ADR) (NASDAQ:VOD) and other British companies should benefit from weaker Pound and Euro rates as the cost of their goods and services will become less expensive to foreign buyers. During the fourth quarter, the number of funds from our database long Vodafone Group Plc (ADR) (NASDAQ:VOD) inched down by one to 17.

Mott Capital closed its position in Hain Celestial Group Inc (NASDAQ:HAIN), as the stock gained 10% during the fourth quarter. The fund said that it was concerned about the company that was investigated for accounting fraud. Even though the audit committee dismissed the allegations, the fund liquidated the position before that announcement. Mott added that it had not found a replacement for Hain Celestial Group Inc (NASDAQ:HAIN), as it chose to remain cautious regarding the promises made by the Trump administration. The number of funds from our database bullish on Hain Celestial Group Inc (NASDAQ:HAIN) declined by four to 28 during the last three months of 2016.

Disclosure: none