Wednesday, January 09, 2008

Biotech 08

It’s been a very good week for biotech investors. The JP Morgan Healthcare conference provided lots of assurance for investors that the sector is alive and kicking. Pretty much all of the big cap companies such as Amgen, Biogen, Celgene, Genzyme, etc… reiterated or guided up their 2008 forecasts. The only big cap that has not presented yet is Genentech, which will present today at 5:30 EST. Genentech will not reveal much in terms of financial forecasts since they’ll be announcing earnings on Monday, 1/4.

I see a big shift into the biotech sector this year. The biotechs have easily outperformed the general indexes so far and with a weakening economy, biotech is the place to be. We have very attractive valuations and companies growing earnings nicely. My goal for this year is to be more patient and hold on more tightly to the winners. Trading will only make your broker and the Uncle Sam rich.


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