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Biotech / Medical : Ligand (LGND) Breakout! -- Ignore unavailable to you. Want to Upgrade?

To: Brian Moore who wrote (17750)	3/20/1998 1:46:00 AM
From: Zeuspaul	Read Replies (1) \| Respond to of 32384

>>Or looking for other factors, such as a track record of great earnings and a trend of increasingly successful earnings?<< You should probably look for stocks other than biotecs. XON has done well over the years. It pays a nice dividend too. You might want to look at some mutual funds. American Century has some funds that concentrate on growth and increasing earnings. The S&P INDEX 500 mutual funds may also fit your investment strategy. If you are "looking for a great record of scientific discoveries, trials, lots of products in the pipeline, partnerships with respected companies" and have a high tolerance for risk then you are in the right place. Regards Zeuspaul

To: Brian Moore who wrote (17750)	3/20/1998 3:34:00 AM
From: Exacctnt	Respond to of 32384

Brian, You pose an interesting point of view, but one not necessarily pertaining to everyone's view of investing in Biotechs. Especially with the market trading at all time highs and most quality companies with established earnings growth trading at lofty PEs. If one were looking to invest in today's environment, where would one invest? Which sector in the market isn't overvalued and also has explosive growth opportunities? In my opinion Biotechs provide that opportunity. I already have positions in those earnings driven stocks that are valued so high and don't wish to invest more in those companies. Investing in Biotechs lets me diversify my holdings. I am not staking my investment decisions in momentum stocks, one hit wonders, nor am I picking only one or two companies to invest in. I currently have stakes in twelve Biotechs. I am spreading my RISK which occurs when playing Biotechs or any stock for that matter. You stated <<suppose you had great selection criteria and came up with a list of ten biotechs that were likely to succeed. Even then, what would be the likelihood that even just a few of these would take off and show a great return for the following year?>> Why limit yourself to a year? If you do, you are right, you may not have a great return. With ten Biotech stocks, of course the right ones <g>, one or two winners that hit it big, will more than compensate for those that falter or tread water. Constant reassessment of your portfolio hopefully will reward you with some winners. Wouldn't it be great if you had a crystal ball that would let you know the exact moment that the street recognizes value. Without one, reliance on your own due diligence is crucial. You also stated. <<Which is a better way of picking stocks ... looking for a great record of scientific discoveries, trials, lots of products in the pipeline, partnerships with respected companies? Or looking for other factors, such as a track record of great earnings and a trend of increasingly successful earnings?>> They all should be a factor in picking stocks. If earnings currently don't exist, make sure you haven't invested in a company that relies on one drug or drugs that don't have a significant profit potential. You need to analyze future projections as to when earnings will occur. Once again it calls for due diligence. Of course, one can sit on the sidelines, waiting for the elusive market correction and better buying opportunities in those established earnings growth companies.<g> For disclosure, I own Ligand stock, warrants and options. I rank Ligand number one in my Biotech holdings. Regards, Bob