tonyt, The May edition of Bloomberg magazine, which I received last night has an article entitled." It's time to buy Biotechs" by Michael Gianturco. The subtitle is, "A professional growth investor on the sector that's finally delivering on its promises". He starts by saying that about a year ago he started buying biotechs."It was also a strategic move to position our portfolios for the 21st century & for the next industry destined for tremendous growth." He mentioned that, "Growth investing is a % game, & small companies in new industries are most likely to show the highest % growth."
"In fact, the biotechnology sector today is approximately where the digital group was in the 1970s. In other words, these stocks are unpredictable & dangerous, & the underlying technology is a mystery to most people. The best thing about the sector is also the worst thing about it. Most growth investors, including many professionals, absolutely loathe biotechnology. They don't understand it, & they don't trust it,therefore, they don't buy it. This explains why b/t stocks are still cheap in a stock market that's long been surging....Professional portfolio managers dislike the b/t group because it has a history of troubling events....It takes a certain amount of grit to look beyond this grim backdrop & see a buying opportunity. But the b/t sector for all its history of hype, represents the most important technology in our future. It can actually transform the fields of medicine, agriculture, & industrial chemistry....Molecular biology is to the second half ot the 20th century what physics was to the first: a springboard for a torrent of widely used commercial applications. Everyone acknowledges the triumphs of biological science. The issue for investors is : Where are the payoffs in technology & products?
..."Commercial b/t remained on the launchpad until the early 80s.(because of the fact it is very) hard to discover & comprehend the thousands of natural products & biochemical pathways pathways spun out over 4 billion years of biochemical evolution.. MORE TO COME |
