ADVFN Logo ADVFN

We could not find any results for:
Make sure your spelling is correct or try broadening your search.

Trending Now

Toplists

It looks like you aren't logged in.
Click the button below to log in and view your recent history.

Hot Features

Registration Strip Icon for default Register for Free to get streaming real-time quotes, interactive charts, live options flow, and more.

And Now for Something Completely Different

Share On Facebook
share on Linkedin
Print

Thank you, Monty Python, for the title – one that is sorely needed at the moment. People need to think about something other than the market correction set off by concerns out of and about China. We can’t afford to all be in a dither. It has been exciting for the global economy to seem to want to improve and for investors to make a pile of money in the stock market.

© Image copyright rdecom

For the past several days, however, people have simply gotten out of control. That’s right, I said “people,” not “things.” Things are doing what we should expect them to do, given the circumstances. Things don’t panic. People panic. Indices going up are a Petri dish for euphoria. Indices in decline are a breeding ground for fear. And, in case you haven’t noticed, it’s the people with the money that are panicking, not the average bloke. There are different motives and emotions at play, but, lest we forget, when the undertaker comes, we go on and our money goes to someone else. So I feel the need to discuss something other than China, mining, oil prices, and especially Barack Obama.

I spent some time checking pharmaceuticals today after noticing that SkyePharma PLC (LSE:SKP) share price had closed up 9.07% and 24.25 points to 291.50, following issuance of it 2015 Interim Results. I immediately got to thinking that I had hardly heard mention of pharmaceutical stocks for the last week. I thought that rather odd. I discovered several interesting items worthy of note:

  • The aforementioned gain in SKP shares, especially when finnCap gave SKP a “BUY” rating.
  • Reports that AstraZeneca’s (LSE:AZN) acquisition, streamlining. and pipeline strategies are beginning to improve the outlook for the buy-and-hold investment strategy that we highly favor.
  • Yet other analysts are saying things like “pharmaceutical (in general) remains a “BUY” opportunity.

Time to Buy a Pharm?

Pharmaceutical is a sector that is not quite as sexy as oil or as glamorous as technology, but it tends to stay healthier than other sectors, especially over long periods of time. The sector should continue to see mergers and acquisitions as new drugs are developed by research companies and universities. Though the smaller firms can often focus on finding the treatment for a singular need, they lack the ability to transform their research success into commercial success because they don’t have the well-developed, global distribution systems and influence that their suitors have.

The demand for innovative and efficacious treatments continues to increase in what has become a highly competitive environment where major companies need to keep their development pipelines full so that, on the healthcare side, new remedies keep becoming available and, on the business side, revenues are strengthened by patented medications that generate the greatest profit margins.

Even in the face of the volatile market situation, some stocks have been relatively unaffected by the storm. Pharmaceuticals make up a fair share of those. You don’t have to take big risks to make money in the stock market. You just have to make wise choices. From where I sit, pharmaceuticals continue to look like wise choices.

CLICK HERE TO REGISTER FOR FREE ON ADVFN, the world's leading stocks and shares information website, provides the private investor with all the latest high-tech trading tools and includes live price data streaming, stock quotes and the option to access 'Level 2' data on all of the world's key exchanges (LSE, NYSE, NASDAQ, Euronext etc).

This area of the ADVFN.com site is for independent financial commentary. These blogs are provided by independent authors via a common carrier platform and do not represent the opinions of ADVFN Plc. ADVFN Plc does not monitor, approve, endorse or exert editorial control over these articles and does not therefore accept responsibility for or make any warranties in connection with or recommend that you or any third party rely on such information. The information available at ADVFN.com is for your general information and use and is not intended to address your particular requirements. In particular, the information does not constitute any form of advice or recommendation by ADVFN.COM and is not intended to be relied upon by users in making (or refraining from making) any investment decisions. Authors may or may not have positions in stocks that they are discussing but it should be considered very likely that their opinions are aligned with their trading and that they hold positions in companies, forex, commodities and other instruments they discuss.

Leave A Reply

 
Do you want to write for our Newspaper? Get in touch: newspaper@advfn.com