Another Buy Signal For Biotech...

Biotech may have just hit bottom.
 

This week, The Wall Street Journal reported that after 15 years of running one of the best small biotech-research services in the world, Evan Sturza is closing shop.

 

The article states Mr. Sturza reached a tipping point and could take no more – “frustrated with the lack of demand for quality independent research and with companies that retaliate against outspoken analysts,” he decide to move on.

 

People just aren’t interested in reading, thinking, and least of all investing in biotechnology.

 

But, the time to do so couldn’t be any better...

 

For example, take the genomics-based Affymetrix (AFFX). The company has a complete monopoly on automated genetic analysis technologies, utilized by nearly every drug discovery company, and considered the gold standard in the industry. The company produces strong revenue while maintaining forefront in diagnostic technologies.

 

Yet, across the last year, the stock has been hammered. Right now, you can pick up Affymetrix, a stronghold in biotech, for about as cheap as it’s ever been.
 

 

In the current market, opportunities like this in biotech abound. My research associate, George Huang, summed it up best:

 

“Everything is so cheap, we could throw a dart at the sector and make money in the next two years.”

 

Good investing,

 

Rob Fannon

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