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Pastimes : Home on the range where the buffalo roam

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To: horsegirl48 who wrote (7425)5/1/2002 2:15:52 PM
From: Venkie  Read Replies (2) of 13815
 
13:32 ET Merrill Lynch sees trading opportunity in tech, biotech
Merrill Lynch notes that a valuation gap has widened between the tech and biotech groups, which may present a trading opportunity; firm notes that the multiples of the two tend to trade in sync, and that whenever there is a divergence they tend to revert by either one group's multiple expanding or the other group's shrinking. The recent run-up in tech appears to have left the biotech multiples at the lower-end of its trading range, and if the theory holds, it is likely that the biotech space will play catch-up to the expansion in tech multiples.
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