By John Linnemeier

Our three holdings--Geospace Holdings, Geely Automobile, and 3D Systems --began to to perform better in April. I don't think there's much particular justification for most of this, other than the market's manic-depressive attitude toward these companies.

I've decided to buy iShares NASDAQ Biotechnology Index, an ETF composed of a large number of biotech companies. Trying to buy individual stocks in this sector is pretty much a crapshoot, and, frankly, there's a good deal of insider information that we'll never have.

On the other hand, the sector, as a whole, appears to be on the upswing for various reasons. In my opinion, Big Pharma simply doesn't have enough new drugs in the pipeline, so the only way to fill it is by buying up smaller companies that have jumped through the respective regulatory hoops for their specific drugs.

The field of genetic engineering, in general, is finally beginning to bear fruit, and I believe may be a revolutionary economic force. I could buy individual stocks, like Seattle Genetics, but in this area, at least, I prefer a more diversified approach.

The investments discussed are held in client accounts as of May 1, 2013. These investments may or may not be currently held in client accounts. The reader should not assume that any investments identified were or will be profitable or that any investment recommendations or investment decisions we make in the future will be profitable.