Alto Capital’s Tony Locantro explains why he thinks biotech stocks are undervalued
Published: 12:12 02 Jun 2022 AEST
Tony Locantro of Alto Capital speaks about weakness in small caps and whether they will lead to buying opportunities. Locantro notes biotech small caps have been smashed, following on from a nasty correction on the NADDAQ and biotech index in the US. The stocks have done nothing wrong, but have had to deal with a lot of pressure which will get worse as investors begin their tax loss selling prior to the new financial year. The investment manager says in these markets, investors treat the companies as numbers on a screen with little respect for the fundamentals. However, this creates buying opportunities and Locantro believes the biotech sector is the best value sector on the ASX. He also lists several biotech and resource companies he believes are worth putting on a watchlist, noting that Alto Capital is invested in these companies.
