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Politics : Ask Michael Burke -- Ignore unavailable to you. Want to Upgrade?

To: Dave Feldman who wrote (83759)	9/26/2000 10:52:33 AM
From: Knighty Tin	Read Replies (1) \| Respond to of 132070

Dave, Yup, one of the volatility deadening factors of CEFs is that their discounts decline and even turn into premiums when the fund assets collapse and the discounts widen as they soar. I remember HQH and HQL at large premiums back in the early 1990s. I don't like to chase sectors, either. However, there are still plenty of under followed and underpriced biotechs. And right now, all it takes in one piece of good news to get the retardos piling into them. I have a much smaller biotech position now that many of my holdings have gone beyond their fair value (yippee!), but I still hold a few and am overweighted vs. other industries. I do worry about the prescription drug plans. The truth is, increasing the number of buyers will be a huge cash cow for these cos., but at first, folks will just notice the margin per dollar of sales, which will decline.