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Biotech / Medical : Biotech Valuation -- Ignore unavailable to you. Want to Upgrade?

To: smh who wrote (1209)	6/20/2000 10:37:00 PM
From: Biomaven	Read Replies (1) \| Respond to of 52153

Let's hope Calpers follow in the footsteps of the Wisconsin State Investment Board, which has been a savvy and supportive biotech investor. There's clearly some speculative froth returning to the genomics sector. Overall, though, we are still firmly in the grasp of the "old economy vs. new economy" fetish. The graph of the biotechs (BTK) divided by the drugs (DRG) still continues to match almost exactly that of the NASD composite divided by the Dow (essentially every single peak and valley on a 60 minute graph match up). The correlation is so precise that I suspect it must be driven by some sort of automated program trading. One interesting sign though is that we appear to have somewhat broken out of the inverse correlation between BTK and DRG that we saw from January through the end of April. We've even had a few days last week where both indices have moved up together. I'm going to remain suspicious of the longevity of any biotech rally that comes at the expense of the pharmas (as did our November thru' March 7th binge). Peter