Thursday, June 02, 2005

Take Some Genentech Off The Table?

It just amazes me that Genentech (ticker: DNA) keeps on rocketing to new highs on a daily basis. I was watching CNBC today and Joe Kernen made an interesting observation. In terms of market cap for domestic biotech and pharma companies, only Pfizer and Johnson & Johnson are larger than Genentech. Who would have thought that Genentech would zoom past Merck, Bristol Myers, Amgen, etc...

I'm really tempted to take some Genentech off the table. I bought the stock around $20 and a little more around $50. I initially purchased the stock based on the potential of Xolair and Raptiva, everyone at that time thought Avastin was a bust. I wish I can say that I used my research skills to find this gem, but it was just dumb luck! The nice thing about my Genentech position is that it's in my Roth IRA, so no taxes if I decide to cash out.

2 Comments:

At June 02, 2005, Blogger Smarty said...

DNA's 3-month chart looks very nice -- a very strong upward trend. I would watch very closely and look for a sign of heavy selling. I would unload some shares if the chart starts to break.

BTW, I always thought the Healthcare would do well this year and very likely for the years ahead. My eyes were on PFE and BMY, but they're too rich for my blood. Maybe later, when I have enough cash to sit on. I'll live off the dividends then. =)

 
At June 03, 2005, Blogger Money Turtle said...

The big pharmas are dirt cheap right now, but they are cheap for a reason - the growth isn't there. I have some Pfizer and JNJ. Pfizer has been dead money for awhile. JNJ has a good story with decent earnings growth and the acquisition of Guidant.

 

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