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Strategies & Market Trends : Speculating in Takeover Targets -- Ignore unavailable to you. Want to Upgrade?


To: Jack Hartmann who wrote (683)4/13/2005 1:37:41 PM
From: richardred  Read Replies (1) | Respond to of 7243
 
I would say yes to that regarding product liability. They are a safer bet since the compounds they use in generic formulations have already been approved, and in use for some time. They however are not immune from lawsuits. Big drugs companies vigorously defend their products from patent infringement. Lawsuits can tie up the generic competition for some time.

As takeover targets. I find the weaker group attractive mainly for the stronger to take out the weak. The market valuation of the weak have come down considerably. Since I am long this group. I'll have till tax loss season to re-evaluate. Hopefully Fundamentals should also start showing some signs of life by fall. The way I see it. I think periodic timing is key when your waiting for a bottom. Allocation is key to when you have confidence in your timing. Self confidence is key when your going long buying a group thats weak, with near term poor prospects. Portfolio diversification is for your mistakes. Tax loss selling is for your loss of confidence.