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Biotech / Medical : Are Biotechs Now Overvalued?

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To: Jim Haynes who wrote (3)7/15/2000 12:17:29 PM
From: seminole   of 14
 
Jim

<<<Is the biotech sector as a whole undervalued, fairly valued or overvalued - and why? >>>

I agree with everyone else. Biotech may be overvalued but the companies I buy are undervalued????

I believe biotechs are overvalued due to the extra demand created buy momentum investors. I believe biotechs are overvalued because growth investors (with a flat DOW) are chasing biotechs as one of the few growth options. However, the trend is up and we have a chance to run to an extreme overvalued point. I would like to take that ride.
I watch the IPO market to indicate overvaluation.
I watch mergers and takeovers to indicate undervaluation.

Still, I am about 95% invested in biotechs. I plan to watch the strenght of the summer rally and watch how the biotechs approach the yearly high.
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