Why would you invest in biotechs
After the biotech boom of the late 80s and
early 90s the funding spigot just dried up,
you don't see too many biotech IPO's do you?
I think that means that the rest of the players
out there give you a good value...there certainly
has not been a lot of money chasing the sector,
many stocks are very depressed...and trade not
far from book value.
The so-called first tier biotech stocks
(Biogen, Amgen) and a smattering of second tier
(IMNX, Sepracor etc) have done well--but it seems
as though fund managers really want to own the
safer stocks. That leaves the so-called platform
companies with very depressed stock prices.
Of course the fun is in trying to find the small
biotechs that could really pop--companies which
seem to have a niche. Those should get bought out
or pop on their own eventually.
If I am wrong, it was a fun hobby--if I am right
it will be a more satisfying way to wealth than
trading and playing the risky game of chase the
hot sector.
That said, I do not have a degree in anything
remotely related to biotech, so again, kick me.
(actually, I think it is not so hard to find
cheap small cap biotech stocks, the sector has
been so ignored you could throw darts and do
okay, given a little patience--some stocks may
be starting to move...check out OSIP, cant even
find a reason why). |
