Replies to post #210151 on Biotech Values

[Whalatane]

No meaningful change in demand ?


(Tempe, Arizona) — Economic activity in the manufacturing sector expanded in February, and the overall economy grew for the 93rd consecutive month, say the nation’s supply executives in the latest Manufacturing ISM® Report On Business®.

The report was issued today by Bradley J. Holcomb, CPSM, CPSD, chair of the Institute for Supply Management® (ISM®) Manufacturing Business Survey Committee: “The February PMI® registered 57.7 percent, an increase of 1.7 percentage points from the January reading of 56 percent.

The New Orders Index registered 65.1 percent, an increase of 4.7 percentage points from the January reading of 60.4 percent.
The Production Index registered 62.9 percent, 1.5 percentage points higher than the January reading of 61.4 percent.
------------------------

Good to see you posting again Poorgrad . Perhaps you might review PLSE ...especially the first video on their web site ..if you can find the time.


Regarding "this run " . Economic indicators in our major trading partners have been improving . Trump , if nothing else , has been successful in minimizing the growth of regulation ( remember the decree ..for every new regulation 2 old ones need to be removed ) . I didn't vote for Trump and opposed his health care bill but on balance the business community see's him as pro business , thus more likely to expand and invest .
Dodd -Frank and the Volcker rule will not be eliminated or replaced but likely to be trimmed in size and scope.

Trumps failure re Health Care may take his attention off attempting to control drug prices . All signs are they will now focus on some degree of tax reform including repatriation of funds held over seas.....all of which is good for Biotech.

Its good that you "are leery " . Whenever one is confident is when "theres danger at your door "

Kiwi

[bladerunner1717]

Sounds like retail investors in biotech are feeling confident and expanding their portfolios. I think all this is a prelude to a correction for our sector.

PGS,

Check the volume. I don't think it sustains your assertion. Doesn't mean a correction can't happen, of course.


Bladerunner

[mcbio]

I'm leery of this run. I read many bio investors getting excited about the money they're making in small cap bios, and everyone is looking like a genius lately.

What run? The past nearly 2 years have seemed like a complete dud for me (with exception of FPRX). Feel like I've just been treading water the past 2 years. Apparently I picked the wrong dozen or so of biotechs to be invested in. LOL

[lgonber]

Sometimes I believe we looking at different stocks. There was already a huge correction on biotech as the IBB was trading at $400s in 2015 and we saw IBB at $240 recently, and hope that was the bottom and past. Comments from Paul Ryan make it seem as though healthcare is off the agenda for a while and pricing concerns should fade away, so hopefully bios can run in 2017 taking the IBB at $320 and $340 after.

[vinmantoo]

Agree. The whole market run seems to be one of anticipation on the part of some investors.

I don't think smart businesses make any meaningful financial decisions on the expectation that a new President will hopefully come through on X and Y campaign pledges. Plus, no meaningful change in demand took place in the last 2 months.

Agreed. It has worried me since the post-election. I have been selling off some of my biotech stocks and have now almost 20% of cash in my stock account. This is unusual for me as I always kept zero cash in my stock accounts and just added money to cover the amount after I purchased new stock. I will consider selling more. I have also sold off more than 10% of my stock holdings in my IRA to inflation protected bonds.