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

To: Biomaven who wrote (2368)	12/21/2000 10:27:59 AM
From: tom pope	Respond to of 52153

I'm about here, assuming nail bed is to be interpreted as bed of nails 3 Flexor response to pain - pressure on nail bed causes abnormal flexion of limbs - decorticate posture

To: Biomaven who wrote (2368)	12/21/2000 10:41:29 AM
From: tom pope	Respond to of 52153

Here's an interesting take on over valuation and reversion to the mean, from briefing.Chart did not reproduce, unfortunately The far more important factor behind the Nasdaq's plunge has been the popping of the tech bubble. Few would now dispute the fact that tech stocks experienced a bubble in 1999 and early 2000. The question for investors is when that bubble has been fully deflated. Arguably, that occurred on Wednesday. There's nothing like a chart to tell the story. Because the bubble began in 1999 and ended in 2000, we need to look at the market's performance over the past two years to gauge where we are in the life of the tech bubble. We have been watching the percentage change in the major indexes since the end of 1998 for this purpose -- that's what we offer in the following chart. It's not difficult to identify the true beginning of the bubble back in the fall of 1999. That's when the blue Nasdaq line became detached from reality and from every other market index. By early 2000, the Nasdaq increase relative to the end of 1998 rocketed to 126%, while the comparable increases in the Dow and S&P 500 were 21% and 24%, respectively. Though the indexes can diverge from time-to-time as a result of the different growth prospects in technology versus old economy companies, this divergence is usually a few percentage points. That 100 percentage point gap seen earlier this year was truly staggering. What we must acknowledge now is that the gap has been erased. Tuesday was the first day since the bubble began that one of the other indexes eclipsed the Nasdaq in performance since the end of 1998. This is a powerful point that warrants repetition: if you had invested on Dec 31, 1998, you would have been better off investing in the Dow (+12.4%) than the Nasdaq (+6.4%). That's almost two years in the heart of the technology revolution in which the old economy Dow outperformed the new economy Nasdaq. How times change. The good news is that this shake-out was necessary. The Nasdaq couldn't return to health until the bubble had died. It died this week. Does that mean that the bottom is at hand? We're not smart enough to know the answer to that, and indeed no one is. But we can say that the Nasdaq is now standing on much firmer ground. The economy is slowing and that's a very important issue, but with Fed rate cuts coming soon, relief from this problem is not far off.