Discussion in 'Trading' started by 50 cent, Nov 5, 2003.
place your bets on the breakout direction...?
Attached is a weekly chart.
This link explains the possible pattern that may be forming.
So far so bearish.
Yes, all sectors including Biotech will go up. That's for sure.
hold your horses, usually after triangles break there is a pullback into the range, and only then the real move starts. so let's wait and see..
Put all of your money on PPHM..........
I live in asia and spent all day looking through some stocks that came up on a screen. Many, many of them were these zero profit, oftentimes zero revenue, pie-in-the-sky, rinky-dink biotech firms.
Now I don't know squat about biotech or how the sector is traditionally valued, but most of the small companies I looked at today seemed extremely overvalued - already up 3,4, 500% YTD, and burning cash quickly.
Yet, MRK may have already fallen to attractive levels. Perhaps its a case of Buy MRK/ PFE, sell the rest ... After all, MRK/PFE will likely acquire the promising ones and let the rest fail, no?
Blue, I agree with you about big pharma being cheap (at least with respect to PFE, which I bought around $30). But not all of biotech is overvalued. Specifically, I can't recall a time when AMGN's traded at such a discount to the group on a PEG basis (it's nearly an even 1 now). They also throw off a ton of a cash, have a strong balance sheet, and have a decent pipeline. So if funds rotate back into AMGN, which I suspect they will, the whole group, including the pie-in-the-sky dollar and a dream stocks, may get carried along with it.
Just my 2 cents.
Separate names with a comma.