Biotech Is Underowned

Biotech has been holding up well during this recent correction. I believe the sector is underowned and that this could be the catalyst that gets people back into the sector. Amgen is my largest long position.


Anonymous said...

Agreed. GENZ's stock reflects an absurd level of pessimism. And after a monster earnings beat (rev up 40%, earnings up 49%), Gilead is up 6% to 47.59, but that just takes it back roughly to where it was in mid-December. Morgan Stanley's analyst convinced everyone that Gilead would never develop or acquire another successful drug and therefore it should sell for the NPV of cash flow from its current portfolio. So Gilead sells at, based on my estimates, 12 times 2010 earnings.

Tsachy Mishal said...

I was greedy with GILD I was waiting for another couple of bucks.