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Strategies & Market Trends : MDA - Market Direction Analysis -- Ignore unavailable to you. Want to Upgrade?

To: Chuck Williams who wrote (69578)	2/19/2001 3:57:58 PM
From: Casaubon	Respond to of 99985

It's not easy for big pharma to just buy out biotech. There is a tendency for attrition to occur from the company acquired, thereby reducing the value of the acquisition to the acquirer. Although it would not surpise me if some of the weaker companies can't go it alone, and get consumed. For now, I see more of a detante, where big pharma funds the R&D of biotech, thereby assuming some risk, while biotech does the grunt work. Big pharma has to trim out middle management and get back to focused research. Biotech has to produce at a ferocious rate and get out of reach from the sugar daddy, big pahrma. The worst case scenario, for biotech, is a loss of autonomy where big pharma starts pulling the strings and biotech is relegated to puppet. Since Wall street decided to give biotech the room to raise enough cash to work more independently, big pharma must now view them as more viable competitors. I see biotech gaining ground on big pharma. I also think making money in the markets will not be easy for a few years, so investment skills will be challenged. People who learn more complex strategies, such as covered call writing, spreads, and trading long and short will outperform the average funds. LTBH will do fine, with a dollar cost average strategy. It just won't outperform.