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Strategies & Market Trends : Gorilla and King Portfolio Candidates

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To: Cosmo Daisey who wrote (49070)11/22/2001 9:22:45 PM
From: Seeker of Truth  Read Replies (1) of 54805
 
The easiest most obvious question about the biotech stocks is where are the profits, but that's not the only point. The technology of each company seems to have an uncertain domination of the marketplace. The impression of biotechnology I get is that each company is selling a tiny piece of the puzzle. The researchers in the labs themselves are so uncertain of the final outcome that they and their venture capitalist backers are typically eager to sell us a good part of their holdings. When such fragmentary technology is finally proven we still have to assess how valuable it is in the whole picture, i.e. how much the big drug companies will be willing to pay for it. Lots of luck. I personally prefer the risks of profitable companies like QCOM,INTC, SEBL etc. ,aka the gorillas of this board.
The big picture is that thousands of us amateur investors are being asked or tempted to pay for research that is too expensive and risky for the big drug companies to want to do too much of. So we are encouraged to finance the tiny companies by buying their shares. Overall it looks beneficial to humanity but maybe not to the individual investor.
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