HQH - HQH: Double-Digit Discount And Dividend Ready For Biotech Rally

2024-07-17 06:56:36 ET

Summary

• HQH features a deep NAV discount at 11%, it is cheap and offers good opportunity for price appreciation.
• Biotech sector is showing strength in recent market rally. HQH with high yield at 13% is a good buy for income investors to participate the promising biotech rally.
• Record financing activities in the sector fuel the business growth and set up for a sustainable market recovery.
• Interest rates play a critical role in the growth of the biotech sector, impacting CEFs like HQH.

Introduction

Since I recommended BlackRock Health Sciences Term Trust (BMEZ) as a buy about a month ago, the biotech CEF has been showing a good run, and it has been up 7.6%. The biotech sector itself is on a verge of a price breakout from a technical perspective. It is a perfect time to add more exposures to the sector and stride for more performance gains in the confirmed ongoing rebound....

For further details see: