Make more than 300% when the world wakes up sick come winter. There is a myth in this biz that “if it bleeds, it leads.” The idea is that what truly makes mainstream media moguls happy is guts, gore and conflict. Drama sells, and sells well. Death, war and sex sell even better.
The global pharmaceutical industry is an often-overlooked sector. David Fessler of Investment U shows us one of the biggest players on the market.
Investment in Cubist (CBST) has now become a twofold offer. If the company defends its patent position against Teva Pharmaceutical Industries Ltd (TEVA) who produces the low-cost generic version of the drug Cubicin, shares will surge. If Teva wins the fight, Cubist is likely a penny stock.
One of the only markets that still offer massive upside is that of healthcare. One company recently received FDA approval to test two breakthrough drugs.
This company has already soared 50% in a week’s time. But the fundamentals say this company is primed for a long-term climb up the charts.
Pfizer Buys Wyeth for $68 Billion; Existing Homes Sales Rose 6.5%; McDonald’s Posts 5.8% Sales Growth; Freeport McMoran Lowers Sales Targets; Lincoln National Corp Cutting Staff 5%; GM Cuts More Jobs, Production; Petrobras to Cut Costs by $4 Billion; Halliburton Settles Bribery Investigation
Emerging Market Funds Lose $48 Billion; Bank of America Sells China Bank Shares; Family Dollar Beats and Raises Forecasts; New CEO, Cost-Cutting at Orbitz; Russian Winter; Monsanto Reaps Profit; No Pain Means Gain for Sun; Oil Slides 12%
FTSEurofirst 300 up 1.1 pct on the day, up 13 pct on week… Index lost 7 pct in Nov, ninth month of losses in 2008… Cyclicals hammered; defensive pharmas surge
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.
Back in December, my friend Steve Sjuggerud described a British spending spree taking place in America. At the time, the pound was worth about $1.95, and Brits were enjoying a 50% discount on their Christmas shopping across the pond.
The Indian market as measured by the Mumbai Sensex Index is down 22% this year, about 25% below its all-time high reached in January. That’s not very surprising: China is down further (about 35%) and most other emerging stock markets have also fallen. Growth in 2008 seems likely to be slower than in 2007 and there are some signs of a credit crunch.