Replies to post #146043 on Zeev's Turnips Patch-No Politics (ZEEV)

[Ace Hanlon]

Well pharma undeperformance is one thing we agree on.

[Zeev Hed]

Not from here on, for periods in between. For instance, I still expect a rough patch over the next 6 to 8 weeks here, during such periods, I expect "flight to safety" into the pharma . Furthermore, once clarity of the winner in the next election comes to the fore, Pharma could outperform as well, particularly in Bush will seem to be the winner, since some of the political uncertainty will be removed. It all depends how cheap they have gotten to in the interim. For instance, if MRK can be gotten at $44, a run to $60 to $66 during "phama exuberance" is a nice 40% to 50% gain. By the way, companies like TEVA and TARO performance will be, IMTO, divorced from the rest of the big pharma, and I expect them to excel.

Got back in BSTE at the half bucker plus discount here at $46.25. On the other hand, a bucker (almost) taken from BGEN here at $39.74 ($.96) and IDPH at $36.88 ($.84). I cannot get my discount on NVEC gave up back in at just $.15 discount from the high here at $34.75

[Bullwinkle]

A decade is a long time... There are a few things worth considering when looking at big pharma: They offer safety, most offer a nice dividend and last but not least they have very deep pockets. These big pharma's are much like the MSFT's and CSCO's of the world. If there are promising patents, therapies or drugs that pose not only the promise of big $$$ but a risk to their livelyhood they just go out and buy up the company. They have and will continue to buy up the competition and or forge alliances with those that have promise. Afterall, a lot of these Bio's need the big pharma's help to survive, forge ahead and get their products to market. Therfore pipelines are filled with other companies' innovations. Just my .02c FWIW