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Strategies & Market Trends : Due Diligence - How to Investigate a Stock -- Ignore unavailable to you. Want to Upgrade?

To: Mike McFarland who wrote (147)	4/1/1999 6:46:00 PM
From: EL KABONG!!!	Respond to of 752

Mike, Any thoughts about the usefulness of IBD's sectors, or Value Line? I subscribe to Value Line (the PC based version). I find that their sector and industry analysis is quite useful in identifying undervalued sectors. I also subscribe to VectorVest. They too have sector and industry analysis, but they tend to be more into the macro-economics than the longer term view taken by Value Line (and S&P as well). So VV is better suited to the daytrader or the short term investor. I'm not familiar with the IBD sectors. KJC

To: Mike McFarland who wrote (147)	4/2/1999 10:57:00 AM
From: ubrx	Read Replies (1) \| Respond to of 752

Mike, I like biotech also. TLC avoids it because of the inherent risks, and there is plenty of RISK. I think that so many were burned by the biotech bubble of 1991 that they avoid the sector completely or only invest in the biggest companies that have proven products (AMGN, SEPR). IMO, the second tier of Biotechs has some companies that are severely undervalued. The tricky part is doing DD on these companies to sort out the potential winners from those dying a slow painful death. Traditional methods don't work (which is probably why TLC avoids them). The goal is to find a company that is developing a product that can pass muster at the FDA then carve out a significant market share. If successful the rewards can be immense. At current valuations I think the risk/reward ratio makes some of these companies worth a bet. Jim