Valuing Biotech: It's the Future, Stupid - 0 views
-
macy macon on 10 Jul 12"Valuing emerging biotech or healthcare companies exclusively based on past performance is like valuing an MBA prospect by little league performance. From developing a blockbuster product (good) to product recalls (bad), revenue can take off in any direction for healthcare. At the same time, my research has shown that the positives outweigh the negatives with a strong margin of safety. Thus, the industry, as a whole, appears to be trading well below intrinsic value - an opinion that is shared by the Russell 1000 Value Index Fund, whose 2nd largest holding is in healthcare."