Biotech Valuation Message Board

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Biotech / Medical : Biotech Valuation

CRSP 53.85

-4.5%

Jan 9 9:30 AM EST

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next

To: IRWIN JAMES FRANKEL who wrote (7035)	9/4/2002 10:53:33 PM
From: Biomaven	Read Replies (3) of 52153

IJ, I think we're close to the dreaded "pushing on a string" phenomenon with interest rates. I'm not sure that another 1/2 point cut in the Fed Funds rate would really do very much, other than perhaps psychologically. The long rate didn't respond at all to most of the short-term rate cuts - it is now responding primarily to the weakness in the economy. So unless the Fed does something really dramatic like buying corporate bonds I don't see that they can do much more than they are. US auto sales and housing sales seem to be chugging along merrily. Further cuts will just lend more fuel to the auto/housing boom without igniting the rest of the economy. Speaking of autos, just for the heck of it I just took a look at GM. Stock is trading not that much above cash ($45 vs $33 cash according to Yahoo) and yielding 4.4% - about the same as a long treasury. PE of 14. So it's not at all expensive on a superficial look (of course there may well be unfunded pension dragons and the like lurking in the Detroit undergrowth). It also has Hughes and GMAC tucked away in there. Peter (sell biotech, buy GM! - just kidding, I think <g>)

Report TOU Violation

Share This Post

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next