Hey, Oscar Mayer made Barron's this weekend.
A focus on highflyers, and a very objective closing paragraph........
In sum, the biotech highflyers are dangerously exposed in a market that
has seen significant selloffs in sector after sector. For this reason,
our firm recently has reversed its previously bullish advice to clients
that invest in this sector. Smart investment is always a matter of
matching risks to potential rewards. So, riding the biotech darlings
further could be dangerous. Sometimes, it's necessary to leave money on
the table in order to keep some in your pocket.
Fine, as far as it goes. The fact is that ONLY the big, well-funded dotcoms had a chance in the world. In this thread, we were adamant about pointing/laughing at even the larger ones.
With biotech, we have small "have nots" that are making labs do tricks. Their pipelines will be in demand.
Valuations are spread out in an irrational fashion. Gruss is correct, as far as it goes; they left their weenie mobile in the garage. However, there is the tendency to paint the entire sector with the "highflyer" brush. Silly.
One last thought..... it's no coincidence that so many interested parties are coming out, in very visible forums, as biotech bulls. I'd love to see them go face down, eating dirt and losses, but.... I agree, the highflyers are over valued.
Sure wish somebody could provide wisdom AND balance. |
