daytrading march 25 pre-market, page-3

Morning all

An article that may be of interest to some.


Are Biotech Stocks a Popping Bubble? That’s the $84,000 Question

By Michael P. Regan Mar 25, 2014

Some of the bull market’s hardest-charging stocks are looking a bit worn out.

The Nasdaq Biotechnology Index is teetering on the brink of a correction, or a drop of 10 percent from its record in February. The gauge of 121 drug makers has lost 9.7 percent from Feb. 25 through last week after rallying 369 percent from a six-year low in March 2009.

The rally in biotech is a study in optimism, with investors in search of a compelling growth story pushing the Nasdaq index to more than 400 times reported earnings and as much as 94 times estimated earnings. That valuation is 25 times the trailing P/E of the Standard & Poor’s 500 Index, making biotech a top contender for sceptics searching for bubbles as the Federal Reserve unwinds unprecedented monetary stimulus.

http://www.bloomberg.com/news/2014-03-24/are-biotech-stocks-a-popping-bubble-that-s-the-84-000-question.html