Sorry!! The article you are trying to read is not available now.
Thank you very much;
you're only a step away from
downloading your reports.

Ray of Hope for Biotech Valuations


Let's hear some good news!

After two days of gloom from my pen, I would be remiss if I didn't mention a stealthy bullish item lurking in the background for biotech.

There has been an enormous amount of turnover on biotech analyst desks as of late. When analysts leave, coverage either is dropped or becomes stagnant. They are not able to rouse the sales troops by pounding the table on their best ideas. Even the market maker/broker side of the business backs off biotech positions because they have no ready support in the form of a knowledgeable, in-house guide.

At ASCO, we met about a dozen new biotech analysts who have filled positions vacant or in flux for a number of months. These new folks are in the time-consuming process of creating new research portfolios for their employers. They are nearing the end of that process and we should see a stream of new coverage initiations coming from some very respectable houses.

While I doubt this will be enough to stem the macro forces aligning against biotech stocks, it does mean those few companies lucky enough to get coverage could buck the trend for some period - particularly if the late-June lift in the market has some legs after the Independence Day holiday.

And the sector needs all the help it can get right now.
< Previous
  • 1
Next >
No positions in stocks mentioned.

The information on this website solely reflects the analysis of or opinion about the performance of securities and financial markets by the writers whose articles appear on the site. The views expressed by the writers are not necessarily the views of Minyanville Media, Inc. or members of its management. Nothing contained on the website is intended to constitute a recommendation or advice addressed to an individual investor or category of investors to purchase, sell or hold any security, or to take any action with respect to the prospective movement of the securities markets or to solicit the purchase or sale of any security. Any investment decisions must be made by the reader either individually or in consultation with his or her investment professional. Minyanville writers and staff may trade or hold positions in securities that are discussed in articles appearing on the website. Writers of articles are required to disclose whether they have a position in any stock or fund discussed in an article, but are not permitted to disclose the size or direction of the position. Nothing on this website is intended to solicit business of any kind for a writer's business or fund. Minyanville management and staff as well as contributing writers will not respond to emails or other communications requesting investment advice.

Copyright 2011 Minyanville Media, Inc. All Rights Reserved.

Featured Videos