Tuesday, April 22, 2008

Lots of Picks and Shovels

A bunch of picks and shovels companies reported strong earnings today. These companies supply R&D reagents / materials to pharma and biotech companies. Invitrogen, Sigma-Aldrich and Illumina all reported after the bell today and all beat their numbers big. This tells me that pharma and biotech are plowing big money into R&D and these R&D tool companies are benefiting big time. Qiagen is another tool maker that's scheduled to report on May 5th and I'm expecting strong numbers from them as well.

Yesterday, Genzyme received news from the FDA requiring a separate BLA for Myozyme produced in their Allston facility. I see this as a minor set back and will definitely be resolved by the end of the year. In many instances, companies will encounter some production set back when scaling up. This is a big buying opportunity.

Note: I have positions in Invitrogen, Qiagen and Genzyme. I would add to Sigma-Aldrich and Illumina on any pull back.

5 Comments:

At April 23, 2008, Blogger z-stock said...

Hey Money T
I have shorts on OIH companies--They have been reporting and so far on SLB did anything to the upside--
zee
I also bought PFE---I don't think they have sub-prime exposure--I'm trying to stay away from those types--

 
At April 24, 2008, Anonymous Shawn Cornett said...

I'm invested in and marketing the the opportunity to purchase/invest in fractional shares of life settlement insurance policies. I'm curious what your thoughts are on this type of investing. Obviously it does not seem to be up your alley which seems to be mostly stocks and its much more of a long term deal but.. your thoughts?...

 
At April 25, 2008, Blogger Money Turtle said...

I'm also staying away from the financials with the exception of MasterCard and Visa. I also like the healthcare companies. The OIH looks like it just had a breakout so I would be careful with any shorts in that space.

 
At May 04, 2008, Anonymous Anonymous said...

What is your opinion on Volcano (VOLC).

 
At May 04, 2008, Blogger Money Turtle said...

I actually like Volcano (VOLC) as a small cap medical play. It's probably a good time to accumulate here and looking for a nice rebound in earnings next year.

 

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