Biotech sector - place your bets....

Discussion in 'Trading' started by 50 cent, Nov 5, 2003.

  1. place your bets on the breakout direction...?
     
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  2. Looks bearish.
     
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  3. So far so bearish.
     
  4. Yes, all sectors including Biotech will go up. That's for sure.

    :p
     
  5. 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..
     
  6. hayman

    hayman

    Put all of your money on PPHM..........
     
  7. 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?
     
  8. 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.

    HD
     
  9. Excellent.
     
    #10     Nov 13, 2003