Comments on dichotomy of today's markets:
On a note indirectly sorta someday related to biotech valuation, it's amusing to me how different segments of the investing public view things. After discussing CRA, INCY, HGSI, MLNM, etc. and the prices they are trading at, here is Proctor and Gamble racing along at a 3%growth rate. When they try to buy some pharma to speed things up even more, the market throws a fit. If I were a long term PG shareholder, I would gladly trade a quarterly charge and maybe some short-term indigestion for a stronger, more diversified company down the road. As big pharma partners of biotechs, they would gain from all the genomic discoveries used on us aging babyboomers, but noooo, it might cause them a temporary disruption of their breathtaking growth rate. |
