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

To: Jacob Snyder who wrote (7493)	12/13/2002 2:34:53 PM
From: Biomaven	Read Replies (2) \| Respond to of 52153

Valuations of biotech stocks expand and contract dramatically, based on macro events that really have no impact on sales/profits/future products of biotech companies. Irrational, but a consistent pattern. I completely agree with this - in fact I have been whining about this pattern for as long as this thread has been around. A long time back I posted some charts comparing the BTK:DRG ratio with the COMPX:DOW ratio and found a startling match. Basically there is a varying demand for high sigma stocks, and this is one of the big drivers of the biotechs. From a relative valuation perspective, the BBH and the other biotech indices have been strong relative to the NAS composite index so far this month. I'm still (somewhat) short the QQQ's, so relative outperformance is good enough for me. Peter