Time to switch out of resources to biotechs?

[Sean K]

I'm not sure if it's too early to be calling this, but I have noticed the past few months more and more posting on biotechs.

Are we coming into a phase where biotechs are the new gold, zinc, iron ore, or uranium speccie?

Or, do the resource explorers/juniors still have some way to go?

Posting this with the idea that the best way to make the biggest gains is to get in before the horse has bolted.

Or, has the biotech industry bolted already too?

The contrarian in me is saying that it's time to move on........

 

[moses]

I've been wondering the same thing myself.

 

[Bobby]

Or, has the biotech industry bolted already too?

......

I don't think it has yet.

I'd like some more opinions.

Bob.

 

[reece55]

Kennas
There is no denying that the hot money has moved from mining to Biotech. I have workmate who maintains a very large private share syndicate and he lothes biotechs to death. But of late, even he admits that there are a few biotechs being purchased in the portfolio. Whilst the mining boom was on, these shares didn't really see the light of day. Now that the mining sector is starting to get the shakes, many of these companies with worthy patents are seen as being cheap.

Don't ask me which to pick however - I have no idea. The whole biotech sector has always baffled me valuation wise - hence why I would be relying on price action to tell me the story. If you don't have a quality biotech in your portfolio, now is the time to get on the boat IMO. Good luck to all having a go in the sector!

Cheers

 

[Sean K]

Kennas
There is no denying that the hot money has moved from mining to Biotech. I have workmate who maintains a very large private share syndicate and he lothes biotechs to death. But of late, even he admits that there are a few biotechs being purchased in the portfolio. Whilst the mining boom was on, these shares didn't really see the light of day. Now that the mining sector is starting to get the shakes, many of these companies with worthy patents are seen as being cheap.

Don't ask me which to pick however - I have no idea. The whole biotech sector has always baffled me valuation wise - hence why I would be relying on price action to tell me the story. If you don't have a quality biotech in your portfolio, now is the time to get on the boat IMO. Good luck to all having a go in the sector!

Cheers

I agree on the valuation thing. Same with some of the speculative resource explorers looking for X in Namibia with some radiometrics...just how are they valued?

Some of these explorers might have 'bio' or 'nano' in their company name in the next 5 years.....

Tough industry, but another that has potential to explode. We are just seeing some movement the past few weeks......

Something to keep an eye on.

 

[Sean K]

I don't think it has yet.

I'd like some more opinions.

Bob.

Bob, I saw a couple fly last week. SOM and BIO? something....??

 

[mb1]

Guys I've been feeling this way too in the last month. If you look at a lot of stocks in this field you can see that they are on the trend up from all time lows.

I'm in a position now whether to increase my biotech holdings or buy into another uranium company such as UNX or URA.

I'm split.

 

[56gsa]

For those of us who don't have the time or brains to come to understand the biotech industries - i'd be interested on any comments about managed biotech funds etc

e.g. comsec has been advertising a eG Capital Bioequities fund for a while now (the units seem to have made about 20% in the last few months...)

Other Oz managed funds I have found:

Colonial Global Health & Biotech Managed Fund
JB Were Global Health & Biotech Managed Fund

Also Biotech Capital (BTC)- listed PDF (listed investments are Phylogica, prima biomed, starpharma SPL, clinical cell culture, stem cell sciences, alchemia) - PYC has been their star performer - doing share buyback at the moment...

But do people know of other biotech funds?

Is there a comparative list that shows their performance? (smartinvestor doesn't list biotech separately.. & hard to find any otherwise..)

 

[mb1]

56gsa, they're the major ones I've come across too. Probably the most potential as well.

 

[Sean K]

For those of us who don't have the time or brains to come to understand the biotech industries - i'd be interested on any comments about managed biotech funds etc

e.g. comsec has been advertising a eG Capital Bioequities fund for a while now (the units seem to have made about 20% in the last few months...)

Other Oz managed funds I have found:

Colonial Global Health & Biotech Managed Fund
JB Were Global Health & Biotech Managed Fund

Also Biotech Capital (BTC)- listed PDF (listed investments are Phylogica, prima biomed, starpharma SPL, clinical cell culture, stem cell sciences, alchemia) - PYC has been their star performer - doing share buyback at the moment...

But do people know of other biotech funds?

Is there a comparative list that shows their performance? (smartinvestor doesn't list biotech separately.. & hard to find any otherwise..)

Thanks for those 56. Another option is companies that invest in or fund other biotechs. I'll be looking up those funds tomorrow, cheers!

 

[Bobby]

Bob, I saw a couple fly last week. SOM and BIO? something....??

Kennas

Yes I watch Nal, Som, Pno, Bbo ~ etc""

Funny feeling to not just grap the T/A right ones, hard to explain why not.
Like to see more action.

Bob.

 

[vida]

Kennas

Yes I watch Nal, Som, Pno, Bbp ~ etc""

Funny feeling to not just grap the T/A right ones, hard to explain why not.
Like to see more action.

Bob.

Yes I have recently acquired some biotechs and have made 275% profit on these since November 06, and can feel something positive is going to happen in near future so am holding on to them. Has anyone any thoughts on Healthlinx which sounds like it has some pretty good products although its share price does not reflect much happening? It seems to have a future.

 

[Bobby]

Yes I have recently acquired some biotechs and have made 275% profit on these since November 06, and can feel something positive is going to happen in near future so am holding on to them. Has anyone any thoughts on Healthlinx which sounds like it has some pretty good products although its share price does not reflect much happening? It seems to have a future.

Vida Well Done!
I know that feeling - bought TOX at .067 cents, look at them now.

Bob.

 

[GOYCO]

Hi Guys

I'm new at trying to value a biotech company. Can anyone give me a few good ones to research? I would really appreciate it.

cheers

 

[Halba]

AVX - hiv phase 2b

 

[doctorj]

So if uranium is where the 'hot' money goes in resources, where does it go for biotechs?

HIV, Cancer, Bird Flu, Surgical gizmos?

And what drives the typical price spikes in biotechs (as opposed to drilling results, resource estimation for resources)? Press coverage? Or is it a case of the rising tide raising all the ships?

I wouldn't have the foggiest where to start with these guys. How do you go about putting a value to research that may or may not come up with something useful that may or not have already been 'discovered' before that may or may not be able to be commercialised?

Atleast with resource companies you know exactly what they're aiming at early on and there's a clearly defined path to commercialisation. Are there any good texts on biotechs someone can point me to that may answer some of these questions?

 

[mb1]

hi doctorj go to the asx website www.asx.com.au and go to industry sectors theres a good write up on the biotech field with most your questions answered.

Yes biotechs are hard to value compared to mining.

I like to have a look at the company's previous high prices over the years and buy while there low like now. how do I know which ones. Have a look which ones are getting the most volumes (NAL has been pretty consistent with high trade)

Read their announcements, are they getting grants and funding?
Have they got patents?
Have they got relations to US or european companys?
Are they already distributing products?
Are they looking to cut down on costs?

these are suggestions to some indicators in my opinion

 

[billhill]

If you are trying to value biotechs the best way in my opinion is look for companies developing technologies in the more niche markets where there is much less competition. Cancer, HIV and Influenza treatments are the holy grails of the biotech sector but are few and far between. In so many years of research we really haven't come that far on these diseases and identifying the company with the next blockbuster treatment is nearly impossible.

Look for companies that have associations with big Pharma or multinationals. They are the ones who run the industry and will spot potential long before the average investor. And look for companies that have an agressive product development pipeline and patents likely to provide steady cashflows.

 

[GOYCO]

I've got to admit it Kennas, sometimes you come up with some great questions. All credit to you, I think your right I just believe the timing is not. 6 to 12 months left in mining IMO. Not just Biotechs though, plenty of really good deals on industrial stocks as well. Sometimes we forget there is more to Australia then what we can dig up..

Cheers

Would still love to know definitely how to value biotechs, I believe if you don't understand it you shouldn't be in it..

 

[chops_a_must]

If you are trying to value biotechs the best way in my opinion is look for companies developing technologies in the more niche markets where there is much less competition. Cancer, HIV and Influenza treatments are the holy grails of the biotech sector but are few and far between. In so many years of research we really haven't come that far on these diseases and identifying the company with the next blockbuster treatment is nearly impossible.

Look for companies that have associations with big Pharma or multinationals. They are the ones who run the industry and will spot potential long before the average investor. And look for companies that have an agressive product development pipeline and patents likely to provide steady cashflows.

That's along the lines of the way I was thinking. If their ideas sound simple and not grandiose, they are probably going to have more chance of achieving what they are aiming at.

Anyway, some biotechs seem to be able to match the volatility of the miners.