Hi hoyasaxa.
About big pharma. I was and am buying based on rear-view mirror numbers regarding p/e, price/dividend, profit margins. This has not served me well in past couple-three years. I'm not competent to ascertain pipelines of these companies; I'm not even sure that drug company analysts can evaluate the pipelines. I have positions in PFE, MRK, BMY, JNJ, NVS in this area. Regarding: "given that all the big hitter chronic diseases have been sufficiently addressed", I'd say there are plenty of sick people who will strongly disagree.
Given the problems I have with drug pipelines and the relative lack of history of genomics companies, I have generally avoided this area. I mentioned PKI a year or so ago when they had some problems - they supply materials to this sector - I still have my small position. I have a speculative holding in CEGE. Also still holding some drug stocks that might be in the genomics/research area that were mentioned here as below-cash plays (although they are now above cash value).
And fwiw also, I hold small positions in Colgate, INVN and FDP as well. My most recent purchase of INVN was $27+ at the beginning of the year; the stock's another that's not participated in this year's market rally.
I don't follow LFG. I have CTGI, which I like because they operate in a booming regional area, and they are a small enough player that they might be an acquisition target. Apparently re-fi's are expected to diminish next year, so CTGI, as well as LFG are expected to wear higher p/e's next year.
I still have LH which you mentioned here. The company is performing as you suggested it might. I see no reason to sell the stock at this time.
Paul S. |
