Leo, Yes, but Vaso is at a 1900 pe ratio without medicare reimbursement or huge acceptance of their procedure. Both are in place for this year. I originally recommended Vaso at 1 and change when it had no PE ratio. The trick is, they save lives and can save many more. And they are finding new indications for their procedures that save more lives. It is also very cheap relative to long hospital stays or a new biotech drug. I have no problem with high PEs in developmental cos. and have recommended hundreds of them over the years. I have a problem with high PEs in cos. that are serving very small niches with an unproven product and huge Wall Street hype behind them.
I assume PBHGX is a Pilgrim-Baxter fund, which frightens me immediately. They are run and gun managers who do almost no fundamental research. They simply buy what Janus bought yesterday. Of course, it has been the sort of market where greater fools have always been available, so it has worked. For now. Personally, I would rather have my triple from September in HQL or HQH, which were certainly as speculative, but in undervalued issues and managed by people who are not herd followers. True, these funds also get wacked on the downside, but at least there are real companies and no leverage behind their value and they sell at discounts to NAV. If I had to be in a run and gun fund, I would trust Janus or T.Rowe Price before I trusted Pilgrim-Baxter. |
