Ligand (LGND) Breakout! Message Board

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Biotech / Medical : Ligand (LGND) Breakout!

LGND 196.14

+2.3%

Jan 6 3:59 PM EST

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To: sdkaye who wrote (23851)	8/3/1998 9:36:00 PM
From: J Stone	of 32384

If the market is correcting itself and the large caps' EPS growth is stalling or about to stall, then biotechs might just be better stocks to hold. So, long as companies like Microsoft and GE are expected to post 20 - 30+ percent annual growth rates, the relative risk/reward of investing in biotechs is poor. Why go for a stock that has a 35% chance (I think I'm being generous) of being a 10 bagger in 5 years but have a downside of losing it all, when you could invest in the S&P 500 index and get close to a perceived 4 bagger (as of the past several years) over the same time period with a probable downside of just getting no appreciation at all? However, if the large caps stall and let's say they're only expected to grow their statical average growth of 10% per year, then biotechs which are essentially unaffected by economic downturns, IMHO, become much more of an attractive investment relatively speaking. If I knew how to plot the S&P 500 index against a biotech index, I might be able to prove or disprove this idea by going back about a decade. Anyway, these are just some thoughts to remind myself I'm in for the longterm.

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