Biotechs and Healthcare - The Next Boom

[billhill]

Hi Guys,
Being involved in this sector myself obviously i take quite an interest. In the last 10 years we've seen an IT boom and a mining boom, so which is the next sector to boom. Well according to the report below its the biotechs and healthcare.

http://www.citynews.com.au/news/Article.asp?id=5318

Indeed state governments seem to be pouring money into the industry and of course there is always demand for healthcare products. So is it the perfect time to position oneself to ride a boom all the way or is this just unwarranted hype. Be interested to here others thoughts.

 

[The Mint Man]

Re: Biotechs and Healthcare - The Next Boom.

Havnt read the report you posted yet but one would think that the healthcare industry, aged housing etc. will do well in the years to come with all the baby boomers ageing, 70 million on the verge of retirement in the US alone!

 

[Out Too Soon]

Picked Pharmaxis, PXS in the November stock tipping comp. Have added to my initial purchase twice, it's going very well. I have been watching a few other biotechs as well. Resources wont run forever, much as we'd like them to.

 

[pods]

I've assumed that it will be the next boom, however i've been burnt somewhat with CCE (bought round 40c, sold at 35c) and NLS (bought 21c, still holding). I figure the only happiness NLS will bring me within the next year is some help offsetting potential capital gains in june next year.

 

[Ken]

The trouble with biotech is the boom actually happens for companies at different times.

a boom is hard to call.

biota going from 60 cents to $2.80 is that a boom. its now 1.40.... but could go over 2.80 in the future once clinical trials are complete.

I find booms in this area hard to pick because its more company based than sector based....

ITs not like gold, where demand is high... People are always going to get sick, its a matter of whethe the marketing is right to cash in.

As for aged care. I think its a bit over the top.... Whoever thinks all the baby boomers are going to pack up their bags and move into a village is kidding themselves.....

 

[billhill]

a boom is hard to call.

Yes to a point. The thing about the biotech sector is that its largely been neglected. The question is does that make it look cheap. Plus its a real growth industry with huge potential. I think if we see a few biotechs run up in price it could lift sentiment in the sector. I don't think the industry is well understood here in australia like it is in the US or europe. Thus any lift in profile might spark a interest by the mainstream fund managers.

 

[stickman]

HI

put mbp on your watchlist this one could turn the sector around ?

chart wise mbp looks to breakout this week


Metabolic, Heartware,chemgenix, and pharmaxis among the top picks for 06/07
Radar investor relations survey of 16 leading biotech analysts

metabolic was a screaming buy at .45 see page 16


http://www.metabolic.com.au/files/L92S02U8KU/ASX_2006AGM_ChairmanandCEOspresentation_27Oct2006.pdf

cheers

holding mbp

 

[billhill]

Big interest from international investors and big pharma in the Australian biotech industry. This is the jist of the article below.

http://home.businesswire.com/portal...d=news_view&newsId=20061113006416&newsLang=en

Good to see some more interest in the sector here.

 

[Sean K]

CIR - Circadian Technologies is a goodie. Held it for a while between $1.10 and $1.40. Looks to have come back into buy territory to me. Invests in other biotechs and they seem to have a good stable of things.

I've been looking at Nano and it's application to medicine for the next boom. Haven't found anything I really like yet.

 

[CanOz]

CIR - Circadian Technologies is a goodie. Held it for a while between $1.10 and $1.40. Looks to have come back into buy territory to me. Invests in other biotechs and they seem to have a good stable of things.

I've been looking at Nano and it's application to medicine for the next boom. Haven't found anything I really like yet.

Kennas, i took a position in SPL (Star pharma) yesterday as i liked what i heard on the ABC about them, and i thought the chart looked good. Then an ann comes out saying they will have a delay in approvals and they hit my stop! SPL is a nano form though, but i think i'll stand aside on them for the time being.

 

[Kauri]

One to watch may be RHC... is moving out or triangle/consolidation with increased vol, but note that old high of $11 may stall it.

 

[stickman]

Hi Kauri

rhc showing a large cup &handle

cheers

 

[Kauri]

Hi Kauri

rhc showing a large cup &handle

cheers

So it is..

 

[billhill]

There is obviously alot of potential in this sector. The biggest problem (for the fundies anyway) is picking the right technology as there seems to be numerous angles to treat every disease. 3 companies that i like in particular are IBA health (IBA), Phophagenics (POH) and Labtec systems (LBT). But there seems to be from the other post many opportunities in the sector.

Big question is will we see a flood of money into the sector over the next couple of years leading to a boom. Like the current mining boom i have read numerous reports suggesting there is going to be a shortage of skilled worker for the biotech industry. Is this because they expect massive growth or is it just a lack of training? I don't know but if it takes off like the mining boom be asured i'm going to be there to ride it all the way.

 

[Fab]

I personally like RBY in this sector

 

[krisbarry]

LVL has a foot in both doors...following the mining boom with affordable housing, and building retirement/aged care houses too.

 

[Kauri]

One to watch may be RHC... is moving out or triangle/consolidation with increased vol, but note that old high of $11 may stall it.

RHC Well, has powered through the old highs at $11, be interesting if she can hold the quick gains or if late in the day sellers bring her back down to test the $11 mark..

 

[Out Too Soon]

Picked Pharmaxis, PXS in the November stock tipping comp. Have added to my initial purchase twice, it's going very well. I have been watching a few other biotechs as well. Resources wont run forever, much as we'd like them to.

Was stop-lossed out last week, (PXS), my November stock tip was starting to look a bit sick :
Back in today, PXS is rocketing again on another great ann'. Bronchitol has fast track approval for Cystic Fybrosis treatment in the USA. On top of their Aridol (Asthma) approval in Europe there'll be no looking back now.

 

[Out Too Soon]

SOrry all! PXS did shoot up to $3.42 today then dived again until I was stop lossed out @ $3.26. very frustrating
If it's going to swing wildly like this in a day should be day trading it instead. All I've been doing is making Pestpac rich.

 

[rub92me]

One that I like is Genetic Technologies Limited (GTG). They hold extensive patents on non-coding DNA, which gives them a solid (and increasing) licence revenue. In addition they have a nice marketshare in DNA testing and some interesting research projects. Bought in a couple of months ago as a long term hold to see how this pans out and recently seems to have found some support above my purchase price.