If you still look at Amazon Inc. (AMZN) as just an Internet retailing giant, you’re not just missing the point – you are also missing one of the really great long-term profit plays in the market today.
Biotech companies are a great investment right now, says Laura Cadden. And support from the Obama administration will ensure this trend continues. Laura picks four small cap biotech firms set to soar.
Government mulls mortgage price-control plan… who needs the free market anyway? Dan Denning on the true meaning behind the recent bull market in bonds. Stocks rally on Beige Book release… did the Fed send us the wrong copy? Bill Gross on stock evaluation for the Brave New World of tomorrow. Byron King with anecdotal evidence that oil is well oversold.
Drug discovery is high-risk, high-reward. It takes about 10 years and $1 billion to bring a new drug to market. And only one of 10,000 new prospects ever makes it to pharmacy shelves. Those that do fetch monopoly-like margins and can bring in billions in sales.
Another strong play from medical stock expert Rob Fannon.
Rob says that although Big Pharma stocks are cheap right now – bellwether Pfizer (PFE) is cheaper than it’s ever been – drugmakers are racing off the side of a cliff.
This is because when patents expire drugmakers loose billions of dollars to generic manufacturers.
But biotech drugs can’t be copied easily. And the sector is in an uptrend. Rob recommends using a biotech ETF to play this trend.
The economic calendar is light in number this week, but it is not without important reports to point out. Christian Hill in Investor’s Daily Edge has the details…
Big Pharma is in trouble. Generic competition, patent expirations and slowing sales are all eating into profits.
So how can you turn a profit in this turbulent sector? By investing in contract research organisations, or CROs, says biotech expert Rob Fannon. When the big pharmaceutical companies outsource research to CROs they get paid whether or not the new drugs ever make it to market.
There’s another way to profit too – contract sales organizations, or CSOs. They’re another way for Big Pharma to outsource, but instead of doing research they sell.
Produce Prices Up Modestly; Target Earnings Off the Mark; Coal Shortage in China; Icahn’s Yahoo Battle Gains Support; Whitney Slashes U.S. Bank Outlooks; Sacked Earnings for Saks; Merck’s Vioxx Settlement; Fed on Pause, Says Kohn.
You can bet there will be a lot of discussion about interest rates this week, thanks to the release of the producer price index (PPI) report tomorrow (Tuesday) and the U.S. Federal Reserve meeting minutes on Wednesday.
Consumer Confidence Hits 5-Year Low; Citi to Offer $3 Billion in Common Stock; Denny’s Satisfied by 1Q Earnings; IBM Bumps Dividend; Merck Drops on FDA Rejection; Airline Shares Take-off; MasterCard’s “Priceless” Quarter; Gildan Shares Sacked for a 30% Loss.