*OT* That is certainly what we saw with
Incyte...I was kicking myself for not
catching the move from 19 to 26...and
by gosh, now it's below $18--you know,
a fellow pointed out I'd get another
chance, looks like he was right.
I'm sure Yahoo and all that other crap
was up today however. Dang, let's get
the rotation underway. Hmmm, many of the
third tier biotech stocks have market caps
of 50M, and a number of these should have
200M/year drugs out in a few years. Let's
see...should I pay something like five bucks
a share for a typical third tier biotech, or
200 bucks a share for Yahoo? Where is the
real growth going to come from...we have
gone over and over this. The boomers greying,
biotech valuation, incredible change and
discovery in the biotech sector etc etc,
it all adds up to the obvious choice. Just
have to be patient and keep buying shares.
Sure, Yahoo (at 40B marketcap) does pull
in 200M right now, and you don't know for
certain which of the third tier biotechs will
have drugs on the market several years from now.
But it does seem that the risk reward is very
reasonable. Even if only 1/3rd of my picks have
a drug on the market in a few years, I'll still
have done spectacularly.
All you can do when you think about the comparison
between these two sectors is shake your heads and
cry tulips!
I have to say, tulips are pretty, but it's
only a matter a time before they drop their
petals, wilt and bend over, then melt back
into the ground...gone by summer they will be. |
