Healthcare-Focused Investor Believes These Three Cheap Stocks are Poised to Explode

In HeartWare International Inc (NASDAQ:HTWR), Sio did not disclose holding shares in its latest 13F filing and in the letter Castor said that he closed the stake in September as the company announced the acquisition of Valtech, which sent the stock 25% lower. During the second quarter, the number of funds with long positions in HeartWare International Inc went up to 15 from 10, and the aggregate value of their holdings stood at 16.20% of the company, but it is most likely that these numbers will deteriorate in the current round of 13Fs, as many smart money investors probably share Castor’s view on the Valtech acquisition. Phill Gross and Robert Atchinson’s Adage Capital Partners was another shareholder of HeartWare International Inc (NASDAQ:HTWR), owning 1.83 million shares at the end of June.

Finally, Neos Therapeutics Inc (NASDAQ:NEOS) and Quotient Ltd (NASDAQ:QTNT) are two stocks that Castor is bullish on, even though Neos is down by 45% since the beginning of September and Quotient’s shares are down by 22% in the same period. Castor believes that Neos Therapeutics will be able to capture a share in the pediatric market with its ADHD therapies and technology for delivering drugs in the form of pleasant-flavored disintegrating tablets, while Quotient Ltd (NASDAQ:QTNT) will be able to generate revenue once it completes its final FDA validation study in the first six months of 2016. Sio did not disclose holding shares of Neos Therapeutics Inc (NASDAQ:NEOS) in its most recent 13F filing, while it reported ownership of 1.09 million shares of Quotient Ltd (NASDAQ:QTNT) at that time.

Disclosure: None