John McCamant, editor of the Medical Technology Stock Letter,
doesn't care if a scientist or a businessperson is at the helm of a
biotech company, as long as management has skill and broad experience.
Investors need to look for companies that offer "specifics, catalysts
and deliverables." He names exactly that kind of company in this
exclusive Life Sciences Report interview.
The Life Sciences Report: John, in February we discussed secular moves in biotech. How has your performance been since then?
John McCamant: It has been very good. For the calendar year we are up 71%, and last week The Hulbert Financial Digest
ranked us number one for both the past 12 months and calendar year. Our
February prediction that this would be a good year for biotech has
materialized.
TLSR: Indeed. On Sept. 13, the iShares NASDAQ
Biotechnology Index (IBB:NASDAQ) was up 48% from one year ago. How far
along are we in this trend?
JM: We see this as a rising
tide, in which you are just beginning to see some differentiation. It is
no longer a matter of simply buying the space or the funds. We are at a
point where individual companies will need to provide specifics,
catalysts and deliverables. Going forward, I think the indexes will have
a bit of a problem, because investors have become more selective.
TLSR: That is an interesting way to put it. We had the secular move and now it is a bottom-up story.
JM: Or what we refer to as a stock-pickers' market. (more)
No comments:
Post a Comment