Here's a well-known fund manager that's been buying PCYC:
BOSTON (CBS.MW) -- The good times are about to roll in the Internet small-cap sector, at least according to Jim Callinan, portfolio manager of the Robertson Stephens Emerging Growth fund.
"I would suggest that over the next three years, the NASDAQ could be down, the Dow could be down and the S&P could be negative, while our types of funds might be up."
Jim Callinan, Robertson Stephens
Those skeptical of small-cap tech issues should consider themselves warned: Callinan recently topped Barron's-Value Line's list of the best mutual fund managers.
For the 12 months ended June 30, Callinan's $1 billion fund had a total return of 59 percent versus 8.3 percent for the Russell 2000, its benchmark, and 23 percent for the S&P 500.
Over the last five years, the San Francisco-based RS Emerging Growth fund outpaced the Russell 31 percent to 15 percent. After all that, Callinan is as bullish about small caps today as ever.
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Callinan: I think biotech stocks are a great area to invest in for the long run. I don't feel like I have enough expertise to be an expert in the area, but the ones I've made some investments in are Gilead Sciences (GILD: news, msgs), Medimmune Inc. (MEDI: news, msgs), Pharmacyclics (PCYC: news, msgs) and Genzyme (GENZ: news, msgs).
These are companies with late-stage drugs that have been approved, that have some other good drugs in the pipeline, and that are ramping up their marketing abilities. Some have outsourced the marketing and some have done it in house, building sales departments. There are some pretty good device companies out there right now as well.
These companies also become takeover candidates because a lot of the big pharmaceutical companies don't have the pipelines. The pipelines have become really expensive. For many of them, it's easier to acquire capacity on Wall Street than it is to start at the beginning. That's one of the reasons I think the stocks are good investments.
cbs.marketwatch.com
With the thin float, I guess one or two aggressive fund managers could be responsible for the rise. Would have thought they would have just waited for the secondary, though.
Peter |
