Published:
September 22, 2008
The
correct answer is
(A.) Celgene (CELG)
That's right, Celgene, has delivered
mind-blowing four-digit returns in
the last decade for its investors. CELG is a company primarily engaged
in the discovery, development, and
commercialization of therapies
designed to treat cancer and
immune-inflammatory-related
diseases. And CELG is just one of
the many opportunities in the
biotech industry these days.
The good news is that this advance
is hardly an isolated incident. Over
the past 25 years, the quantity and
quality of biotech companies have
grown considerably. And during this
time, stocks in the sector have
enjoyed no less than five massive
bull markets. For example, an entire
index of biotech stocks vaulted to
quadruple-digit gains in the early
1990s, delivering a return of over
+1,300% -- meaning many of the
index members zoomed up even more.
The bad news is that those run-ups
were punctuated by periods of sharp
losses. In fact, the Nasdaq
Biotechnology Index peaked near
1,600 in early 2000, a time when the
mapping of the human genome was
making headlines. But today, it sits
below 900, some -40% off its highs.
But history has shown that for every
step backward in this field, there
has been a giant leap forward, and
the upswings tend to last longer
than the downswings. In fact, now
this group is finally beginning to
gain strength. The Nasdaq
Biotechnology Index has posted an
gain of +7.7% over the past three
months, while the S&P sank -6%.
And if previous bull runs are any
guide, then this could be just the
first step of a much bigger upward
move.
With that in mind, StreetAuthority
editor Nathan Slaughter recently put
biotech companies under the
microscope, looking for sound
companies with large drug pipelines and
positive cash flows that are far
safer than tiny, speculative
players. Investors looking
for exposure to the biotech industry
might want to check out the latest
issue of Nathan's
Half-Priced Stocks
newsletter, which offers in-depth
analysis of the industry and
profiles of four companies that are
in particularly good positions to
deliver heart-stopping gains! To learn the names of these
stocks, and to learn more about the
Half-Priced Stocks newsletter,
please visit this link.
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