Netflix, Inc. (NFLX), General Electric Company (GE): Mott Capital Management’s Top Winners and Losers of 2017

General Electric Company (NYSE:GE) was a big disappointment for many investors as the stock ended 2017 as the worst performer among companies in the Dow Jones Index. Mott Capital is among these investors and it saw the stock lose over 37%. Mr. Kramer expressed his disappointment in himself for “believing in the company’s potential”. He pointed out that  General Electric Company (NYSE:GE) “became plagued with cash flow issues, resulting in the dividend being cut, for only the third time in its history, while the earnings were slashed” after the departure of the company’s old CEO. Mott Capital closed its position in General Electric Company (NYSE:GE) after the shareholder meeting.

Mott Capital saw Celgene Corporation (NASDAQ:CELG)‘s stock drop by 9.84% mainly due to the losses registered in the last eight weeks of the year on the back of the company’s termination of the development of a drug for ulcerative colitis. The termination resulted in Celgene lowering its longer-term revenue target, which sent the stock down. However, Mr. Kramer is still optimistic about Celgene Corporation (NASDAQ:CELG)’s prospects.

“The company is a leader in the biotech space and the battle against cancer. It has started 2018 by making a $7 billion acquisition of privately held Impact Bioscience, helping to strengthen its drug pipeline,” he said in the letter.

Alkermes Plc (NASDAQ:ALKS) was among Mott Capital’s worst performers in 2017, even though the company’s stock inched down by 1.53%. Mr. Kramer believes that 2018 will be the transformational year for Alkermes Plc (NASDAQ:ALKS) because the company’s opioid dependence drug Vivitriol continues to grow and gain market share, “while the company is awaiting data from one of its lead medicines in development for schizophrenia and is in the process of completing an application to obtain FDA approval on its medication for depression.” Mr. Kramer also pointed out Alkermes Plc (NASDAQ:ALKS)’s licensing deal with Biogen Inc (NASDAQ:BIIB) for multiple sclerosis drugs as one of the catalysts to look forward to this year.

Disclosure: none