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Biotech / Medical : Merck
MRK 100.33+1.3%3:59 PM EST

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To: Bernie Goldberg who wrote (649)3/15/1998 2:30:00 PM
From: Mephisto  Read Replies (2) of 1580
 
I think investors have become more sophisticated. They want to invest in proven drug companies instead of taking chances on tiny little companies that do not have a product or if the company has a product the investor may not understand the consequences of that product.

I also think Americans are beginning to think about management b4 they buy shares. Most everyone has seen what has happened in the mutual fund sector when managers skip from one fund to another. It can be a disaster for the investor. On the other hand, a new fund manager might make great profits for an investor. The problem: you never know.

For example, Boeing is a company with bad management. Most companies would think they were in heaven if they had as many orders as Boeing. But what happened? Boeing management screwed up. They did not ramp up their orders for parts and they did not train their workers as quickly as they should have.

I have shares in Boeing so that is why I feel like I can criticize the company. I hope shareholders fire the current management.

By contrast, Merck is a company that is managed very, very well.

Geez! I am chatty for a Sunday morning!

Here is an article that compares the biotech firms with the drug companies.

"By contrast, the drug group with Merck (NYSE:MRK - news), Warner-Lambert (NYSE:WLA - news),Abbott Laboratories (NYSE:ABT - news), Schering-Plough (NYSE:SGP - news) and Pfizer (NYSE:PFE -
news) -- which many times drive development at biotechnology firms -- has soared 18.5% since January."

The article's point was that overall biotechs have not fared as well on the market as the major drug companies.

I hope the weather is nice & you have a nice Sunday!!!

Mephisto
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