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Strategies & Market Trends : Mish's Global Economic Trend Analysis -- Ignore unavailable to you. Want to Upgrade?

To: Elroy Jetson who wrote (100433)	8/5/2009 9:28:46 PM
From: Casaubon	Read Replies (1) \| Respond to of 116555

Only because of this undue influence of large pharma does the large pharmaceutical industry enjoy a return on capital which is triple that of other American businesses. If this statement were true, wouldn't it imply that the stock price appreciation of these companies were growing at 3x that of comparable companies? Two implications from your flawed statement: The stocks are, in fact, not appreciating at a rate anywhere near what you imply. If they were growing return on capital at such a prodigious rate, you could borrow massive sums (perhaps by leveraging up your house) and achieve unbelievable returns without risk.