If you're going to do this "popup" jazz, try popping up when Tommy talks about ^BTK from the NAZ wall. Teach
him what ^BTK is, that it's an average of mostly OPERATIONAL companies, not research boutiques. These
companies produce DRUGS, and are therefore relatively recession-strong. The index does NOT represent the
biotech sector as a whole; the biotech bubble has ALREADY popped.
CNBC's commentary on the sector is beginning to tick biotech champions off, big-time. BFD, you say? Look for
CRIS (Stryker) and Centocor (JNJ) news from yesterday. While Tommy is misrepresenting the ^BTK, biotech
garnered two positive results from regulatory agencies. The sector is hot, even if CNBC is lending their ear to those
who would misrepresent its current status.
Hunks et al.:
To further illustrate my point.......
On 29 December, the last day of trading for year 2000, the ^BTK closed at 634.32. Today it closed at 533.57, off 16% in four trading days which included the all-time best day (percent gain) in NAZ history.
Also after the close on 29 December, I established, based on closing prices, a portfolio of eleven "popped" biotechs. It closed UNCH today, relative to the 12/29 close......
siliconinvestor.com
Today's "treatment" by CNBC of the sector retreat was fair and without bias. It was honest, straightforward reporting of a slaughter. Thank you.
To represent the sector and its opportunities even more fairly, one need understand that patents and preclinical work have VALUE. As Joe said today, the good biotechs are going down and the bad ones are going down further. In a sector retreat, the entire spectrum of companies gets clobbered. Some reach a cap where there is no longer much room for downside, an irrational low relative to ABSOLUTE value which is poorly understood.
Some of us at SI have an outstanding track record -- the best track record -- for finding those opportunities.
Biotech will be a leading sector of the economy for decades. There are scum companies and there are sincere efforts to develop valuable medicines. Please show respect for the latter, and understand that sector volatility creates ops that Arnhold Barfholder, Oscar Mayer, and Motley Gruel just can't grasp.
Thanks.
p.s. that portfolio, 2001, may or may not bear resemblance to my own personal portfolio. There is no implied investment advice in this post. It is a tradition to establish and follow portfolios at SI-biotech, and those associated with the VD and T/FIF threads should be respected for their successes -- for their unparalleled successes. The portfolio "2000" finished the year at better than +180%.
Rick |
