I would agree that a person buying into a sector fund
right now is taking on some extra risk. But I also
think that a reasonable amount of research can lead
a person to some outstanding values still in biotech--
I own GZMO, KDUS, CIST, CNSI, GLIA, ELN, and SNAP,
as well as AVE and SGP. Let's see how they perform.
I'll bet it takes awhile for the pharmas to start moving
up--but I'd be very disappointed if I had more than one
or two stinkers in that line up of biotechs--of course
they wont all pay off overnight, but I do not think
you could find too many folks who would argue me out
of owning, say, Gliatech and Elan at these prices.
The others have more speculative appeal, but most will
do surprisingly well over time. GZMO is the most
frustrating, have owned it since $7, and so hard not
to take money off the table, but how can you when
you really look into this one--it's the sort of thing
a person could retire off of in five years, and like
getting Entremed...and then a stealth genomics play
for free!
Would I want to own FBIOX right now, nah.
Or Celera? Or Sequenom? Nah.
Or some of the junky pump and dumps--
why bother with momentum. Do your DD, buy some
ideas, and see what happens.
I would not be buying too many of the genomics plays
right now, I am temporarily out of Genset, but that
is only because I wanted extra shares of Gliatech for
the squeeze. |
