4 anti-gold biotech plays
The sector's revaluation is on, and these names in particular have made some stunning moves.
It was as if they had a Food and Drug Administration buy program. Of course, the yield hunters went right after stocks like Eli Lilly (LLY) and GlaxoSmithKline (GSK) and the now perennial 52-week-high AstraZeneca (AZN), the latter totally undeserving of the honor given the poor performance of its actual business as opposed to its stock.
But what I find so astounding isn't the strength in the classic, somewhat high-yielding soft goods stocks but the amazing resilience of the stocksthatgoupeveryday. I am making that one word, because it is the new title I am using for Gilead Sciences (GILD), Biogen Idec (BIIB), Celgene (CELG) and, perhaps most stunningly, Regeneron Pharmaceuticals (REGN).
Now each of these companies has some terrific drugs in the works. There are novel formulations and terrific pipelines. That's terrific, but I have to tell you that this everyday revaluation -- one I warned you about when I suggested you buy calls on these stocks -- is pretty stunning.
Regeneron in particular, is most amazing. It has a terrific ophthalmological pipeline as well as the blockbuster Eylea, and it has a potential for a brand-new anti-cholesterol franchise that isn't based on statins, for those who can't tolerate them.
But what the growth mutual funds want is growth that can't be pinned down and isn't even crimped by European formulations, which had been the worry for, say, Celgene not that long ago. And these four horsemen have it.
Perhaps the best way to think about this is to recognize that these stocks are the anti-gold. Anything that could drive up gold is bad for biotech. Anything that can drive it down is good. So next time you see gold swoon and take down the whole market, we now know the total handbook for the moment: Buy more deep-in-the-money calls on Biogen Idec, Gilead Sciences, Celgene and Regeneron.
These four stocks remain THE go-to stocks on any geopolitical/terror weakness in this market.
Jim Cramer is a co-founder of TheStreet and contributes daily market commentary to the financial news network's sites. Follow his trades for Action Alerts PLUS, which Cramer co-manages as a charitable trust and is long JNJ.
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Can you say Asset Bubble Cramer??
Quote -- WASHINGTON (AP) - The International Monetary Fund is urging the Federal Reserve and other central banks to closely monitor their extraordinary efforts to jump-start economic growth, warning that the policies could inflate asset bubbles and destabilize financial markets.
that the policies could have "adverse side effects," including excessive corporate debt, a stock market bubble and risky investments by pension funds. -- End Quote
Pretty much the only reason the stock market is at or near record highs is the record amount of money the Federal Reserve has been pumping into it.
Like Gaul there are three major factors that will crush the stock market much sooner rather than later.
The first being the weeding out of workers in the US who make enough money to even have a 401K plan let alone contribute to it. More than half of American workers are now stuck in dead end minimum wage jobs and the percentage is growing each day. Which is why you have 50,000,000 Americans on food stamps. We should have 50,000,000 new jobs in this country paying at least $120,000 a year but what do we have instead from Obama 50,000,000 new food stamp people.
The second is the massive number of people retiring each year 10,000,000 a year and who are taking out $30,000 to $75,000 a year from their 401K plans or pension plans to live on. Those 401K plans and pension plans are having to sell stocks and bonds to come up with the cash to pay out to these retired people. In some cases like retired Fire Fighters and public workers in California they are getting $200,000 a year from their pension plans. All this taking out of money from the stock market and the reduction of new workers not putting in money has caused a permanent out flow of money from the stock market.
The third is Bernanke throwing tens of billions of fake money in the stock markets to try to keep asset valuations high enough that pension plans are not declared broke and disbanded. Coupled with the fact that no one is buying the trillions of dollars in new US T-bills each year and Bernanke is having to generate about $3 to 5 trillion dollars of money thru the printing of monies a year to keep the ponzi scheme going. This is not to mention the mess that S.S. and medicare are causing along with Obama care.
All of this points to a quick and complete collapse of the US economic system. It's not a matter of years anymore folks it's a matter of months before the collapse.
Get ready for hyperinflation when the rest of the world abandons the dollar and we have to come up with real money to buy 50 percent of our food and almost all of our manufactured goods from overseas.
"stocksthatgoupeveryday. I am making that one word, because"............
Because you are a clown Bobo and that is what clowns do ... make up funny words like supercalfragalisticexpealadocis.
World Bank warning about stimulus bubbles..............
Busting my sides............... Like the doctor that asked you to cough telling you the Urologist is gonna stick their hand up your azz.
It seems the new way to make a million in the finance industry these days is to lead 1,000,000 sheep to your idea and fleece $1 worth of wool off each sheep. The amount is too small for any one sheep to notice, so nobody calls you to the carpet, yet when you are through, you have your $1,000,000.
This may sound like a crazy analogy but I don't think I'm too far off the mark either.
V L: When was the last time gold was at $500/oz ? In the 80's ? For it to fall that far, all economies around the world would have their GDP through the roof. And that just doesn't happen.
And how much gold does NASA use in their space programs. With the Mars rocket ahead of schedule, this program alone will consume much gold for components in the various space vehicles & modular living quarters currently in development. And that goes for the military drone projects as well. When you build electrical devices, gold is the absolute best conductor for the money- and that's at room temp. Just think how much more the conductivity increases when these materials are frozen to -200c or below ?
So 'everyone' hates gold now ? That's like saying you hate hamburgers when their done! What do you do with that burger once it's done ? You consume it ! And after their gone, won't you go back to the store and get more in the future ? Soo.....what do you do when gold is done climbing ? You- you know- consume (sell) it.
It's been fluctuating around the high 1300's but all it will take to 'get a rise out of it' is more volatility in the markets. And when does the volatility usually start here in the USA ? SUMMER TIME ! And just think (I know its hard for some of you) what the volatile nature of the markets will be when Obama care ramps up in October ?
If your just a buy & hold guy; It's just better to buy your gold from the jewelry store & wear it.
"Cramer, there is no such thing as anti-gold, just more or less of it. Gold does not produce a product, employ people, or pay a dividend. Gold just sits there more or less."
You are wrong. Gold- certificates stand in for the metal. They have actual value that can and will be toxic in a price run. Too much automation makes falseness as viable as actual metals in transacting. While you lug your rock around, super-computers can alter pricing in a nano-second. The relative term would actually be- anti-gold. I will offer this again... no one left bread crumbs so we can retrace steps back to solvency. It's a blind trudge up steep and slippery slopes lined with psychopaths. Expect BAD and you won't be shocked.
Royal, the only thing I want to ponder right now is a burger, cup of coffee and a nap..
My helper had to leave early..
I think Fatty Cakes wants to give him a job, raking leaves or cleaning out drains..?
Fatty only gets callouses on his hands...ONE WAY.
And ain't from counting money or driving a Bentley. ***edited for*** Oink Oink..snuffel,snuffel.
Ice Cold....I scraped together enough to get about 80 more shares of COP...@ 56.60.
Would have bought more, but can't drain all the accounts.
Sorry, I couldn't buy more for your accounts...
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Stocks drift lower and bonds are hit as investors await the Fed. Prepare for higher volatility this week.
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