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Strategies & Market Trends : Value Investing -- Ignore unavailable to you. Want to Upgrade?

To: E_K_S who wrote (31226)	6/19/2008 3:25:44 PM
From: Jurgis Bekepuris	Respond to of 78748

E_K_S, I think we talked about pharmas before. I am really conflicted about this sector. On one hand, I still think there are a lot of things to be improved in global drug/medicine market. So I would want to participate. Perhaps even feel well on the social side of investing in medicine for people. On the other hand, it seems that the patent-protected side of the business is flat or declining with unclear long term consequences for the large pharmas. I looked at FRX, which showed up as a possible attractive play, and it's the same story as other pharmas: patent expirations with unclear drug replacement. Sure, you are getting dividends, but what if the stocks continue declining as the drugs are not replaced? My play now is the China pharma distributors and minors (AOB, CHME, LTUS). Not that they are good replacement for drug majors, but there at least I see growth that may be sustainable for couple years at least. There are issues though like very huge receivables and up to 12-month bill collection times + some dubious "chinese traditional medicine" remedies. Good luck