"Long-term, Gilead Sciences (NASDAQ: GILD) is the best life sciences company on the planet," says biotechnology specialist Michael Shulman in The ChangeWave Biotech Investor.
"Auto sales may plunge, home sales may stay in the tank and retail sales may fall, but disease, old age and human frailty are undeniably 'forever.'
"While the economy in 2009 is almost certainly going to contract, analysts expect the sale of biologic drugs and other life sciences products to increase 12%-15% -- with some winners growing much faster.
"The winners will be rewarded, even in a bear market. In the past year, Gilead has outperformed the Nasdaq by more than 30 percentage points -- and it's doing it as a mature biotech.
"Gilead recently took a hit when the FDA asked for more information about a potential new antibiotic for cystic fibrosis. That spurred doubts about growth rates in the HIV marketplace, and those doubts have created a great buying opportunity in a great company.
"I expect the earnings report on Oct. 16 to beat expectations and surprise the Street. In fact, several analysts agree and are now predicting a stronger third quarter.
"In my view, there is no other area of the economy that can move on its own against the market like biotech and life sciences. They are driven by two things that are guaranteed: disease and aging.
"So, consider shifting some of your equities out of the more problematic, policy and economically dependent stocks and segments, and into biotech and life sciences. This isn't a marketing pitch -- it's just common sense."
Steven Halpern's TheStockAdvisors.com offers a daily look at the latest market commentary and favorite stock picks and investment ideas from the nation's leading financial newsletter advisors.
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Reader Comments (Page 1 of 1)
10-21-2008 @ 4:17AM
Andrade1225 said...
How in the world could an antibiotic treat a disease "Cystic Fibrosis?" Antibiotics are used for infections/bacteria...not for diseases nor viruses...hmmmmm?