Time to switch out of resources to biotechs?
- Thread starter Sean K
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Bobby
Sure. Quite simply I still see value in quite a few of the mining stocks..Many on low forward PE's, China and India should keep prices relatively stable for a while, albeit not at these high levels but still respectable. The problem comes when all the new mines come on line in 08, 09, 10. China's growth can not be exponential forever. When value becomes hard to find then I think it is time to move on. The market at the moment is seen as fair value. Not cheap not overpriced, but fair. I read a book a long time ago which said "when BHP is around a PE of 10 then it's a buy. When 20 then get out " wish I could remember the name of the book. It's a good yardstick IMO. I also know that using PE's for some mining companies are inappropriate but diversified miners IMO are the exception to the rule.
cheers
Sure. Quite simply I still see value in quite a few of the mining stocks..Many on low forward PE's, China and India should keep prices relatively stable for a while, albeit not at these high levels but still respectable. The problem comes when all the new mines come on line in 08, 09, 10. China's growth can not be exponential forever. When value becomes hard to find then I think it is time to move on. The market at the moment is seen as fair value. Not cheap not overpriced, but fair. I read a book a long time ago which said "when BHP is around a PE of 10 then it's a buy. When 20 then get out " wish I could remember the name of the book. It's a good yardstick IMO. I also know that using PE's for some mining companies are inappropriate but diversified miners IMO are the exception to the rule.
cheers
Sean K
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In regard to information resources and how to evaluate biotechs, a friend of mine is signed up to a weekly newsletter called Bioshares - or something. I'll try and get the details of it. He has found it to be quite informative and it has put him on the path to finding some good potential stocks and understanding the industry a little better. This guy has completely avoided the resources boom and stuck with biotechs and seems to have gone ok.
(disclaimer: I am not signed up to this newsletter, have no association with it, and only know about it through my friend - this is not an add!
)
(disclaimer: I am not signed up to this newsletter, have no association with it, and only know about it through my friend - this is not an add!
)
Sean K
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In regard to timing: good point, resource speccies may have some time to run. But how long? It's impossible to tell. Most times, when a boom stops, the opportunity to get into the next big thing has been missed. Might be an opportunity to get out at the peak, and get into something just about to take off....just thoughts...I have not decided if it's the right time now - I'm very happy watching uranium stocks skipping along at the smell of yellow cake - or even a picture of potential yellow cake from a satellite! LOL
Hi all,
It is a bit hard to know where to draw the line on what is a bio sometimes
I have recently bought POH, I guess that is a bio, they have a food additive Nestles want, an international agreement has been signed.
They still have other products to come to market, the stock is starting to head back up to old highs, maybe a bit of blue sky if the other prods launch as well.
Another spec is FER, if this proves up it would be a billion dollar deal IMO, I got in late but have still turned a profit.
Wouldn't mind buying another bio, I think we are going to see a bit of action in 2007 in this sector.
It is a bit hard to know where to draw the line on what is a bio sometimes
I have recently bought POH, I guess that is a bio, they have a food additive Nestles want, an international agreement has been signed.
They still have other products to come to market, the stock is starting to head back up to old highs, maybe a bit of blue sky if the other prods launch as well.
Another spec is FER, if this proves up it would be a billion dollar deal IMO, I got in late but have still turned a profit.
Wouldn't mind buying another bio, I think we are going to see a bit of action in 2007 in this sector.
tech/a
No Ordinary Duck
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I've had a look but cant find any Charts for Resource or Biotech sectors.
Are there any?
If not It would be handy to make up a composite of stocks which could be classified in each sector.
Is there a list somewhere?
Are there any?
If not It would be handy to make up a composite of stocks which could be classified in each sector.
Is there a list somewhere?
tech/a
No Ordinary Duck
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Based with these 2 charts it would be very easy to see if they are strong or weak,and can be compared to each other and the ASX to see which is out performing each.
You could then find which stock is out performing which in each sector.
I have made up a composite index of Uranium miners (The small caps under 100 million.) Some interesting things found.
You could then find which stock is out performing which in each sector.
I have made up a composite index of Uranium miners (The small caps under 100 million.) Some interesting things found.
Hi Tech,
I don't know if this will help, but I have been charting all the companies listed on the ASX's biotech and pharmaceutical list since february last year, and the overall percentage gain for that period to yesterdays close was 6.54%.
For the last quarter (1/10/2006 - 31/12/06) the gain was 15.31%.
For the last month (December) it was 4.16%
If you need any other info I will try to help, but please keep in mind I'm just a beginner (so simple words please!!)
cheers
Mouse
** editted to add, those figures don't include any companies listed after I started recording them in feb 06.
I don't know if this will help, but I have been charting all the companies listed on the ASX's biotech and pharmaceutical list since february last year, and the overall percentage gain for that period to yesterdays close was 6.54%.
For the last quarter (1/10/2006 - 31/12/06) the gain was 15.31%.
For the last month (December) it was 4.16%
If you need any other info I will try to help, but please keep in mind I'm just a beginner (so simple words please!!)
cheers
Mouse
** editted to add, those figures don't include any companies listed after I started recording them in feb 06.
Good for you. I had a friend who operates a few pharmacies and he says he would never speculate on bio-techs, too much uncertainty, things go wrong too often and products take too long from trials to market if they ever get that far - another friend who was a genetics professor totally refused to think about bio-tech shares, he said his work was not about that.
soul said:
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I'm new at trying to value a biotech company and I have hold some CCE. Can anyone give me a few good ones to research? I would really appreciate it.
cheers
Angela
cheers
Angela
You should ask a professional share broker for selections. However, I have done very well with Compumedica (CMP) lately. Also Benitec (BLT) is in my portfolio but its in a very risky situation. I am not recommending anything just offering my selections. I also hold CCE which is doing quite nicely I think.
angela200172 said:
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vida
thank you very much for your help ,
angela
thank you very much for your help ,
angela
angela200172 said:
Angela,
One I am looking at right now is POH, quite advanced in terms of trials, relatively well cashed up and has an interesting agreement with Nestle at the moment.
Deborah Rathjen successfully took PTD through to commercialization and she is now at BNO which looks interesting but trials are at early stages and they will definitely need to raise capital soon.
Also take a peak at SLA and TIS. Should see some revenue coming through for these two in the near future.
Also BTC (BioTech Capita) would be worthwhile researching. The fund invests in biotechs and I would expect them to do some thorough valuations. They have CCE on their list and several others. I don't have any BTC shares yet.
angela200172 said:vida
thank you very much for your help ,
angela
