Another Buy Signal For Biotech...
by Rob Fannon
July 21, 2006
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
Editor, Phase 1 Investor
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Big Pharma Rings Up The Sales
“Profits of Pfizer Inc., Roche Holding AG and Wyeth exceeded analysts' estimates on sales of premium- priced drugs for cholesterol and cancer and a vaccine to prevent pneumonia and meningitis.
Pfizer, the world's largest drugmaker, reported that second- quarter profit rose 10 percent as sales of its Lipitor cholesterol pill unexpectedly jumped 9 percent. The New York- based company's shares climbed as much as 2.4 percent.”
Read on...
Google Eats Yahoo!’s Lunch
“Google's Internet search engine is used about three times more than Yahoo's, according to ComScore Networks Inc., and the results underscore Google's dominance in the market for search- linked ads. Unlike Yahoo, which this week reported sales that missed analysts' expectations, Google beat predictions with software that better targets ads to consumers.
‘These numbers showcase that Google is predominant in the areas where they're playing,’ said Rob Enderle, an analyst at San Jose, California-based Enderle Group. ‘Yahoo's numbers indicated they were being hit by Google. This confirms that.’”
Read on...
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America’s largest coal producer, Peabody Energy, reports huge earnings increase… falls 10% on softening coal demand.
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More earnings today… Halliburton, Radio Shack, Eli Lily.
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Big names on the New Lows list… Ford, eBay, Overstock.com, Qualcomm, XM Satellite Radio, Yahoo!, Yum! Brands. |
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Last |
Change |
52-Wk |
| S&P 500 |
1249.13 |
-0.85% |
1.13% |
| Oil (USO)* |
69.10 |
-1.07% |
1.86% |
| Gold (GLD)* |
62.59 |
-2.25% |
48.32% |
| Silver (SLV)* |
109.00 |
-2.15% |
-21.08% |
| US Dollar |
86.26 |
-0.14% |
-3.54% |
| Euro |
1.2634 |
0.19% |
4.08% |
| VIX |
16.22 |
4.31% |
58.55% |
| ^HUI |
319.95 |
-4.75% |
63.16% |
| 10-year yield |
5.03% |
-0.03 |
0.85 |
| * Since ETF inception |
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| Company |
Sym |
Industry |
Southwest Gas |
SWX |
natural gas |
OGE Energy |
OGE |
natural gas |
Piedmont Natural Gas |
PNY |
natural gas |
Valley Natural Gases |
VLG |
specialty gases |
New Jersey Res. |
NJR |
energy services |
American Retirement |
ACR |
senior living |
Kellogg |
K |
food |
Kroger |
KR |
grocery store |
Safeway |
SWY |
grocery store |
Wells Fargo |
WFC |
financial |
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| Company |
Sym |
Industry |
Building Materials |
BMHC |
building materials |
Yahoo! |
YHOO |
search engine |
Brinker International |
EAT |
restaurants |
The Mills |
MLS |
REIT |
Labor Ready |
LRW |
staffing |
Allied Defense |
ADG |
defense |
Brookfield Homes |
BHS |
homebuilder |
Caribou Coffee |
CBOU |
coffee |
XM Satellite Radio |
XMSR |
satellite radio |
eBay |
EBAY |
online auctions |
Frozenfood Express |
FFEX |
trucking |
Cheescake Factory |
CAKE |
restaurants |
iRobot |
IRBT |
robots |
NY Times |
NYT |
newspaper |
Palm Harbor Homes |
PHHM |
homebuilder |
Wm. Wrigley Jr. |
WWY |
chewing gum |
Servicemaster |
SVM |
landscaping |
Yum! Brands |
YUM |
restaurants |
Openwave Systems |
OPWV |
software |
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