Is Now the Time to Buy Drug Stocks?
June 19th, 2008 by admin
Everywhere you look you can see the wrath of a bunch of beat up drug stocks. For a few of the ultra contrarians out there this is the time to bet the farm on undervalued drug stocks. One of the key components to watch is how much cash each individual stock generates. The whole picture says bet on the pharma group when it is trading at a low multiple of earnings, sales and cash flow. The rational behind this theory is that if one or all three of these attributes are in place then the drug pipeline of future products is one giant bonus but without any overstated price buildup around the pipeline. It’s a way to get in on the pipeline for free.
While the pharma group as a whole can be tricky to navigate it is nonetheless undervalued by many of the top analysts. When the analysts start to come out from under the rocks and start buying the group as a whole this may very well be the trigger point for the average investor to get in at or near the bottom of an undersold market. The timing for this seems to be now with many of the big stocks trading as much as 30 to 40% off there highs of last year. Buying a stock that has had no fundamental changes over the last year but is selling at a large discount seems to be a very prudent move.
In addition to the obvious undervalued plays in the market when you throw in the new drug developments some of these companies have on the horizon; the fishing indeed looks promising. There are so many new drug prospects on the market that address huge target markets that finding a pharma with a positive new release is like doubling up on the icing on a cake.
Not only are there major releases coming but there are also major changes in the way modern medicine may look at treating disease. There is a huge and successful movement under way that is called virbrational medicine. It is powerful in its techniques and becoming more accepted daily by traditional Newtonian doctors. Because our bodies consist of 99% water and the new transmitter is water the outlook for this technology is terrific. The theory of this major movement is that “less is more″ and with the recent advancements and with a broader acceptance by western doctors the prospects look compelling and very promising.
Naturally if you are looking to make a move in this direction with you investing it helps to have a system that can predict these major trend moves prior to the fact. For a closer look at such a system check out AEStocks where our latest month return was 38% and our 3 month return was 83%.
Trey Hayes a retired Counterintelligence and Counterterrorism expert left no stone un-turned when it came to protecting Americans. As the founder of Alpha Equities Trey has build a very impressive record o selected winning stock trades. Using 17 unique factors Trey takes the guess work out of trading. Over the last 4 years his trades have produced a non-cumulative return of over 964%. In the last year his return exceeded 400% and for the latest week of May 15, 2008 his return was an impressive 26.6%. So if you seriously want to make money trading check out this remarkable system at Alpha Equities. Our URL is http://aestocks.com
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