Is it profit taking?
A very good question. I got Worth magazine and it had an article that pointed out that drug stocks, especially biotechs, give better results than regular tech stocks and have less risk associated with them.
So, what's happening? Drug stocks are going up and tech stocks are going down. Could it be? But it is!
Over the years, I found that it isn't a good idea to run after every fad. Besides, the tech stocks have been in the tank since September of last year and only recently have come back part of the way. Only part of the way. Accordingly, I am not going to run after drug stocks because I get the distinct impression it is a fad. Nevertheless, Eli Lilly is doing well because of the approval of a new drug.
Here is a typical news item on a drug stock I got from
briefing.com
SMITHKLINE BEECHAM PLC (SBH) 51 1/8 +1. The FDA has approved company's Topotecan, an ovarian cancer drug, that may help patients who have not benefited from other treatments. Cancer drug works by inhibiting an enzyme essential for the growth of tumors. Drug will be marketed under the name of Hycamtin and will compete with the standard drug Taxol. One side effect, however, is that Topotecan causes the immune system to be less effective in fighting infections. While this side effect is treatable, it could prompt that women be hospitalized for treatment. |
