Replies to post #102835 on Biotech Values

[AlpineBV_Miller]

We expect small-cap bios to trade more with an the macro market in relation to their percevied risk. Lower risk = more with the macro. Alpha will only be found in riskier bets, which sounds good until we remind ourselves alpha is not inherently positive.

Bio investors are increasingly afraid of everything regulatory. The toxic political environment is also adversely affecting bio investing. Nowhere is the conspiracy theory situation more rampant than ascribing every bobble in the regulatory process to some black helicopter (hmmm, red socialist helicopter?) interference from up the administration power chain.

[DewDiligence]

Re: Inventory levels in the US economy

Dew has argued that the shipping/transport numbers are a bullish sign for the economy, but Rosenberg takes up that argument and counters by saying that all we saw was an inventory build-up; there is no end demand.

There has been no inventory buildup according to at least one bellwether company I follow: John Deere. This slide is from DE’s FY3Q10 CC on 8/18/10: