There has been a lot of strong recommendations around biotech lately on Contrarian Profits.

Phase 1 Investor editor Rob Fannon recently wrote that biotech was one of the few market sectors to show positive returns as  many other stocks were getting hammered. He sees great values in the sector.

There’s a good reason for this strength. A struggling economy won’t hurt biotech and medical as much as, say, an automaker, retailer, or restaurant chain… And biotech is one of the few industries showing solid sales growth.

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Bristol Myers Moves for ImClone; Kodak Earnings Fade; Diana Shipping Doubles Earnings; Crude Stumbles Again; Google to Start VC Fund; Primetime Ad Drama; MasterCard Slumps on Less Spending; S&P Says U.S. Car Companies are “Junk”

• Bristol-Myers Squibb Co. (BMY) yesterday (Thursday) offered $4.5 billion in cash for biotechnology company ImClone Systems Inc. (IMCL), the Associated Press reported. ImClone’s board has yet to comment on the proposal, which offers its stockholders $60 per share, a 30% premium to its Wednesday closing price of $46.44. Bristol-Myers already owns about 17% of ImClone.

• Eastman Kodak Co. (EK) said yesterday (Thursday) that second-quarter profit fell, as traditional film-based revenue slumped 14% to $847 million. Sales climbed 1% from $2.47 billion to $2.49 billion, and revenue from digital businesses rose 10% to $1.64 billion.

• Diana Shipping Inc. (DSX) said yesterday (Thursday) that second-quarter profit more than doubled due to higher charter rates and an increase in operating days, the Associated Press reported. The company said its earnings for the quarter ended June 30 increased to $56.7 million, or 76 cents per share, up from $26 million, or 41 cents per share, for the same period last year.

• Light, sweet crude oil for September delivery fell $2.69 to settle at $124.08 a barrel on the New York Mercantile Exchange yesterday (Thursday). Prices are up 59 percent from a year ago, but have dropped 11% this month on concerns demand in the U.S. is pulling back.

• Google Inc. (GOOG) has plans to start-up a venture capital fund to provide seed money to promising start-ups, MarketWatch reported. Google follows in the footsteps of other tech giants with similar funds such as Intel Corp. (INTC), Cisco Systems Inc. (CSCO) and Microsoft Corp. (MSFT).

• CBS Corp. (CBS) shares slumped 3% after the television network lowered its outlook based on slackening advertising sales, Forbes reported. Advertising sales fell 6% due to fewer primetime viewers and less spending by local stations. CBS reduced its guidance to the nearly flat from a prior estimate of growth of 3% - 5%.

• MasterCard Inc. (MA) fell almost 10% yesterday (Thursday), as investors worried about the effect waning consumer spending would have on debit and credit card use, Bloomberg News reported. MasterCard shares dropped $26.58 to close at $244.15.

• Standard & Poor’s lowered the rating on the three major U.S. automakers yesterday (Thursday), as domestic car companies continue to lose ground to foreign competition. General Motors Corp. (GM), Ford Motor Co. (F) and Chrysler LLC were all lowered to a rating of “B-minus,” six levels below investment grade, Reuters reported.

Source: Global Investing Roundups Friday, August 1st, 2008

Pepsi Chugs Along on Foreign Sales; Credit Suisse Continues its Struggles; Peltz is Thinkin’ Wendy’s; Drugmakers’ Earnings Sedated; Dubai Aerospace to Dump $2 Billion on More Planes; Merrill Maintains Dividend; Mining CEO Bullish on Gold; Celestica’s Profit Comeback.