Bill, Steve, and others. Thanks for your input here - if you guys run across another BIOI let me know. One of my Lone Star buddies, Dave Kurtz, tells me some interesting stories about his investment club - he says he walks in a starts doing an analysis of BIOI and everyone sort of looks at him like he is crazy - they all like the large cap names the are familar with and the small cap stuff still scares the heck out of them. Then again, if you do your homework and diversify you will do OK, if not real well.
Ran my screens last night again on Zack's - wanted at least 4 analysts covering a company, more than 70% have a buy or strong buy, price to book less than 2.5 (half the S&P 500), debt/equity less than 0.25 (less than half the S&P 500 avg), 12 month trailing PE less than 21, long term concensus growth more than 17% , long term growth to PE greater than 1.5 - out of the 39 "survivors" BIOI stood tall - along with three others in my Lone Star portfolio. Isn't technology great?
Also, Michael Murphy of the Cal Tech Letter is bullish on biotech also - is a great defensive play if Asia explodes - I may have posted the link earlier but an article with his take (mostly on electronics but the paragraph at the end mentions biotech) is at members.aol.com
Thanks again for all your work and your willingness to share your findings.
Best - Joe |
