Biotech Values

[medchal]

"...why aren't those stocks getting killed?"  Darned if I could give a definitive answer, but part of it has to be that they've been half dead and coughing up blood for a long time anyway.  It seems that those who rail about the bloated profits of that sector have been strangely remiss in buying stock in these companies to participate in all the windfall profits they postulate.

Travelers (TRV), for example is trading at a P/E of 8.46.  Principal (PFG), which, after decades in the health insurance business (claiming that it was and would always be a core business for them) threw in the towel and abandoned it completely a few years ago, trades at a P/E of 14.86.