Does RARE ever go down? I was gonna take a stab when it broke the magical $100 plane, just to see what would happen. Now look at it: a buck thirty and climbing higher.
The banks are where you want your long term capital. Super regional names like BOFI and SBNY are my favorites.
Avoid basic materials like the plague. We are enduring a period of deflation. Let’s be clear about this salient point. Oil is a trading vehicle, not an investment.
Biotech is hot for two reasons.
1. Big pharma is flush with cash and they need new drugs to fuel their growth. So instead of hiring talent and discovering treatments via R & D, they’re buying other companies at crazy valuations.
2. Biotech investors are living the dream and aren’t hamstrung by revenue or earnings growth metrics. Investors are dreaming of FDA approvals, subsequent billion dollar drugs and mega deals with big pharma. As a result, sky is the limit.
And of course there is a AAPL. If you’re going to be invested in U.S. equities, you must own the company with $190 billion in cash. You’d be foolish not to.
Then there’s the Internet security software names, all growing fast, but mostly losing money. These are high beta/risk/return plays.
Retail stocks are being dismantled by the AMZN juggernaut. The only online store that is growing faster, believe it or not, is M. The only aspect of retail that hasn’t been crushed by online vendors is footware, which is why FL, NKE and SKX are crushing it so well. Consider FINL for a long term turn around.
Lastly, we have China. Those maniacs should never be taken seriously, since their companies can’t be trusted. Trade them small and fast and don’t look back.
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