Thursday, July 14, 2005

A Good Day For Genzyme

This morning Genzyme reported very strong numbers. They reported $0.57, which beat the street by $0.04 and raised guidance for the year. The street liked the news and sent the stock up ~6.5% to a new closing high of $65.30. A lot of analyst were expecting the company to miss their numbers because of the strong US dollar. Genzyme derives a big chunk of their sales overseas. The strong dollar did have an impact, but it turned out to be very minimal. I'm going to check out the conference call - boring most of the times, but when you invest in individual stocks - it's a must. You have to do your homework, there's no way around it!

Overall, it was a very good day for all the big cap biotechs (Amgen, Genentech and yes - even Biogen Idec). The biotech exchange traded funds: BBH was up ~ 3% and the IBB was up ~ 1%. If you're going to buy a biotech ETF, go for the BBH (it includes Genentech). The IBB does not include Genentech, it's only composed of the NASDAQ biotechs.

Looking forward to more earning reports... so far... so good!


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