Battered biotech stocks have long-term strength

The Ticker


Have biotech stocks flamed out? Money magazine says: "After months of tremendous returns, biotechnology investors have been badly burned, but the sector's long-term prospects are undeniably sweet. Here are smart ways to play the most volatile sector of all."

Its Top 5 picks: Amgen Inc., Genentech Inc., Genzyme General Division, PE Biosystems Group Corp. and Pharmaceutical Product Development Inc.

"Everybody is chasing short-term performance. Even the leveraged-buyout people are buying telephone companies instead of industrial companies. Everybody -- day traders, hedge fund operators, LBO people, right down the line -- is piling into the same stocks, which is, in effect, an inadvertent Ponzi scheme, and will eventually blow up." (Julian Robertson, CEO, Tiger Management)

WALL STREET WATCH: "Even though investors are still looking for `buy points' for their favorite OTC `darlings,' the Composite's risk is still to the 2,800-3,000 area. The Nasdaq's bear phase has further to go." (Barron's)

"No matter how you figure it, shares of Berkshire Hathaway `A' Inc. have more upside than downside." (Michael Sivy, columnist)

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