Daily Forex Market Commentary for November 14, 2006 Forex Market Commentary by Cornelius Luca, Currencies Analyst, GFT The dollar made the expected recovery on Monday and should attempt to repeat the same thing against the European currencies, while slipping against the yen. But Tuesday will see the release of the US retail and PPI report, so don’t forgert that the medium-term outlook is negative. Euro/dollar One day after peaking at a 2 ??-month high of 1.2899, euro/dollar fell...
Booyah Breakdown: It’s a Wash
February 15, 2007 on 8:53 am | In |
It was a big week for the health care and biotech industries.
With a change in power in Congress, the Democrats have launched their “100-hour plan,” which includes a focus on Medicare drug pricing and reversing the ban on stem-cell research. Also, California Gov. Arnold Schwarzenegger unveiled a plan for universal health care insurance for the country’s most populous state.
On Thursday, a bill to reverse the ban on federal funding on research on new lines of embryonic stem cells passed the House by a margin of 253 to 174. While this may not immediately include enough Republican votes to override the president’s veto threat, that may change after the U.S. Senate passes a more moderate bill and negotiates, in conference committee, enough compromises to capture a veto-proof majority of both chambers.
The stock market prices companies on the basis of where business conditions might be six months or more into the future. Drug discovery at biotechnology companies can take years, and the market sees a favorable legislative environment for these companies developing.
On the other hand, established drugmakers such as Merck ( MRK) and Pfizer ( PFE) are paying high premiums to buy smaller biotechnology companies in an attempt to replace drugs that are coming off patent protection.
While this may be good for holders of biotechnology stocks and funds, it has the potential to dilute the value of pharmaceutical companies. This, combined with an attempt by some members of Congress to reduce the revenue these companies receive from Medicare for their existing drugs, puts big drug stocks in a negative light.
The impact of Schwarzenegger’s universal health care insurance plan for California on health and biotech stocks is less clear. Hospitals, for instance, would have to pay a 4% fee into the system, however it would eliminate most of the unpaid emergency room care given to the uninsured.
For drug companies, this may be a long-term positive, as children or adults who had previously stayed out of the preventive health care industry would be able to purchase prescription drugs. Or, if the critics of the plan are right, drug companies will produce fewer innovative new drugs if they are restricted on pricing.
Top-Performing Health Care and Biotech Funds
Fund Ticker Rating Fund Type 1 Week Total Return
ProFunds Biotech Ultrasec-IV BIPIX E Open-End Fund 2.84%
Biotech HOLDRs Trust BBH D+ ETF 2.63%
Saratoga Health and Biotech-B SHPBX E+ Open-End Fund 2.49%
Rydex Series Biotech-ADV RYOAX E- Open-End Fund 2.42%
Live Oak Health Sciences FD LOGSX D- Open-End Fund 2.36%
GenomicsFund.com GENEX E+ Open-End Fund 2.13%
Franklin Biotechnology DIS-A FBDIX E Open-End Fund 2.09%
Fidelity ADV Biotechnology-A FBTAX E Open-End Fund 2.01%
Fidelity Select Biotechnology FBIOX E Open-End Fund 1.95%
SunAmerica Bio/Hlth FD-A SBHAX E- Open-End Fund 1.90%
Source: Bloomberg
ProFunds Biotechnology UltraSector ProFund was the big winner this week, climbing 2.84% in the five trading days from the close on Thursday, Jan. 4 to the close on Jan. 11.
The fund is designed to return 150% of the movement of the Dow Jones U.S. Biotechnology Index. With weightings of 80.0% biotechnology, 17.8% pharmaceutical, and 1.8% health care products stocks, the top holdings are Amgen (AMGN) , Genentech (DNA) , Gilead Sciences (GILD) and Genzyme (GENZ) .
Next on the list is the exchange-traded fund Biotech HOLDRs Trust (BBH) , which gained 2.63%. It holds the same companies listed above for BIPIX as its largest holdings, along with Biogen Idec (BIIB) , Applera (ABI) , and Medimmune ( MEDI) . Almost 81% of the fund is concentrated in biotechnology companies and more than 15% in pharmaceutical stocks.
Worst-Performing Health Care and Biotech Funds
Fund Ticker Rating Fund Type 1 Week Total Return
IShares S&P Glbl Healthcare IXJ C- ETF -1.15%
Fidelity Select Pharma Port FPHAX D Open-End Fund -0.27%
ProFunds Pharm Ultrasectr-IV PHPIX E- Open-End Fund -0.19%
Pharmaceutical HOLDRs Trust PPH E+ ETF -0.10%
BlackRock Healthcare Fund-I MAHCX E Open-End Fund 0.00%
H&Q Life Sciences Investrs HQL E- Closed-End Fund 0.00%
Fidelity ADV Health Care-T FACTX D Open-End Fund 0.09%
John Hancock Hlth Sciences-A JHGRX E Open-End Fund 0.10%
Vanguard Health Care Fnd-INV VGHCX C Open-End Fund 0.11%
Quaker Bio Pharm-Health FD-A QBPAX D+ Open-End Fund 0.23%
Source: Bloomberg
The health care fund that took the biggest hit this week is the iShares S&P Global Healthcare Sector Index Fund ( IXJ) , an ETF that gave back 1.15% for the five trading days ending Jan. 11. The fund holds 18.0% in health care products, 8.4% in health care services and 6.7% biotechnology. But its largest concentration is in pharmaceuticals at 63.9%, including Johnson & Johnson (JNJ) , Pfizer, Novartis (NVS) , and GlaxoSmithKline (GSK) .
With even more exposure to pharmaceutical stocks, at 94.8%, the Fidelity Select Pharmaceuticals Portfolio is also seen to be at risk from the Democratic-controlled Congress’ attempt to mandate that Medicare negotiate for lower prescription drug prices. The fund’s top holding is Merck, followed by Pfizer, Novartis, Bristol-Myers Squibb (BMY) and Eli Lilly (LLY) .
This has been a good week for funds holding biotechnology stocks. Plus, the long-term seems brighter with the health care industry spending considerable time and money looking inward to see how to become more efficient in the delivery of care and the purchasing of drugs and other health care products.
Unlike last week’s utility funds, health care and biotechnology funds have significantly higher levels of volatility. This accounts for the comparatively low ratings generated by our risk-adjusted return mutual fund model for the best and worst performers. If the president’s threatened vetoes are sustained, the worst performers above could easily switch places with the best performers in the short run.
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eBay Listings That Keep Customers Attracted »The Tel Aviv 100 index, which tracks the largest companies on Israel’s exchange, crossed the much-anticipated 1000 level for the first time Wednesday, completing a 5.5% climb since the beginning of the year. Share increases across the board were fueled by a host of bullish corporate and economic news. Earlier this week, Standard and Poor’s raised its outlook on Israel’s debt from negative to stable based on “improved economic and fiscal resilience to external shocks.”...
China Launches Mining Program in Zambia Chinese President Hu Jintao Inaugurates Copper Mining Investment Program in Zambia By JOSEPH J. SCHATZ Associated Press Writer The Associated Press LUSAKA, Zambia - Chinese President Hu Jintao launched a copper mining partnership with Zambia on Sunday and won praise from Zambia’s finance minister for his focus on economic investment rather than politics. Hu planned to travel Monday to Namibia his fifth stop on an eight-nation African tour intended...
Booyah Breakdown: It’s a Wash
February 4, 2007 on 8:04 pm | In |
It was a big week for the health care and biotech industries.
With a change in power in Congress, the Democrats have launched their “100-hour plan,” which includes a focus on Medicare drug pricing and reversing the ban on stem-cell research. Also, California Gov. Arnold Schwarzenegger unveiled a plan for universal health care insurance for the country’s most populous state.
On Thursday, a bill to reverse the ban on federal funding on research on new lines of embryonic stem cells passed the House by a margin of 253 to 174. While this may not immediately include enough Republican votes to override the president’s veto threat, that may change after the U.S. Senate passes a more moderate bill and negotiates, in conference committee, enough compromises to capture a veto-proof majority of both chambers.
The stock market prices companies on the basis of where business conditions might be six months or more into the future. Drug discovery at biotechnology companies can take years, and the market sees a favorable legislative environment for these companies developing.
On the other hand, established drugmakers such as Merck ( MRK) and Pfizer ( PFE) are paying high premiums to buy smaller biotechnology companies in an attempt to replace drugs that are coming off patent protection.
While this may be good for holders of biotechnology stocks and funds, it has the potential to dilute the value of pharmaceutical companies. This, combined with an attempt by some members of Congress to reduce the revenue these companies receive from Medicare for their existing drugs, puts big drug stocks in a negative light.
The impact of Schwarzenegger’s universal health care insurance plan for California on health and biotech stocks is less clear. Hospitals, for instance, would have to pay a 4% fee into the system, however it would eliminate most of the unpaid emergency room care given to the uninsured.
For drug companies, this may be a long-term positive, as children or adults who had previously stayed out of the preventive health care industry would be able to purchase prescription drugs. Or, if the critics of the plan are right, drug companies will produce fewer innovative new drugs if they are restricted on pricing.
Top-Performing Health Care and Biotech Funds
Fund Ticker Rating Fund Type 1 Week Total Return
ProFunds Biotech Ultrasec-IV BIPIX E Open-End Fund 2.84%
Biotech HOLDRs Trust BBH D+ ETF 2.63%
Saratoga Health and Biotech-B SHPBX E+ Open-End Fund 2.49%
Rydex Series Biotech-ADV RYOAX E- Open-End Fund 2.42%
Live Oak Health Sciences FD LOGSX D- Open-End Fund 2.36%
GenomicsFund.com GENEX E+ Open-End Fund 2.13%
Franklin Biotechnology DIS-A FBDIX E Open-End Fund 2.09%
Fidelity ADV Biotechnology-A FBTAX E Open-End Fund 2.01%
Fidelity Select Biotechnology FBIOX E Open-End Fund 1.95%
SunAmerica Bio/Hlth FD-A SBHAX E- Open-End Fund 1.90%
Source: Bloomberg
ProFunds Biotechnology UltraSector ProFund was the big winner this week, climbing 2.84% in the five trading days from the close on Thursday, Jan. 4 to the close on Jan. 11.
The fund is designed to return 150% of the movement of the Dow Jones U.S. Biotechnology Index. With weightings of 80.0% biotechnology, 17.8% pharmaceutical, and 1.8% health care products stocks, the top holdings are Amgen (AMGN) , Genentech (DNA) , Gilead Sciences (GILD) and Genzyme (GENZ) .
Next on the list is the exchange-traded fund Biotech HOLDRs Trust (BBH) , which gained 2.63%. It holds the same companies listed above for BIPIX as its largest holdings, along with Biogen Idec (BIIB) , Applera (ABI) , and Medimmune ( MEDI) . Almost 81% of the fund is concentrated in biotechnology companies and more than 15% in pharmaceutical stocks.
Worst-Performing Health Care and Biotech Funds
Fund Ticker Rating Fund Type 1 Week Total Return
IShares S&P Glbl Healthcare IXJ C- ETF -1.15%
Fidelity Select Pharma Port FPHAX D Open-End Fund -0.27%
ProFunds Pharm Ultrasectr-IV PHPIX E- Open-End Fund -0.19%
Pharmaceutical HOLDRs Trust PPH E+ ETF -0.10%
BlackRock Healthcare Fund-I MAHCX E Open-End Fund 0.00%
H&Q Life Sciences Investrs HQL E- Closed-End Fund 0.00%
Fidelity ADV Health Care-T FACTX D Open-End Fund 0.09%
John Hancock Hlth Sciences-A JHGRX E Open-End Fund 0.10%
Vanguard Health Care Fnd-INV VGHCX C Open-End Fund 0.11%
Quaker Bio Pharm-Health FD-A QBPAX D+ Open-End Fund 0.23%
Source: Bloomberg
The health care fund that took the biggest hit this week is the iShares S&P Global Healthcare Sector Index Fund ( IXJ) , an ETF that gave back 1.15% for the five trading days ending Jan. 11. The fund holds 18.0% in health care products, 8.4% in health care services and 6.7% biotechnology. But its largest concentration is in pharmaceuticals at 63.9%, including Johnson & Johnson (JNJ) , Pfizer, Novartis (NVS) , and GlaxoSmithKline (GSK) .
With even more exposure to pharmaceutical stocks, at 94.8%, the Fidelity Select Pharmaceuticals Portfolio is also seen to be at risk from the Democratic-controlled Congress’ attempt to mandate that Medicare negotiate for lower prescription drug prices. The fund’s top holding is Merck, followed by Pfizer, Novartis, Bristol-Myers Squibb (BMY) and Eli Lilly (LLY) .
This has been a good week for funds holding biotechnology stocks. Plus, the long-term seems brighter with the health care industry spending considerable time and money looking inward to see how to become more efficient in the delivery of care and the purchasing of drugs and other health care products.
Unlike last week’s utility funds, health care and biotechnology funds have significantly higher levels of volatility. This accounts for the comparatively low ratings generated by our risk-adjusted return mutual fund model for the best and worst performers. If the president’s threatened vetoes are sustained, the worst performers above could easily switch places with the best performers in the short run.
No Comments yet
Sorry, the comment form is closed at this time.
Oman: Qatar gas by 2008 »MUSCAT, Oman, Jan. 23 (UPI) — Oman energy officials say natural gas from Qatar should flow from the cross-border Dolphin pipeline by 2008, despite recent concerns from Saudi Arabia. “Qatari gas will come to Oman by 2008,” said Oman Oil and Gas Minister Mohammed al-Rumhy. “They will supply around 200 million cubic feet a day.” Saudi Arabia told shareholders in July it was concerned over the pipeline route, though Dolphin Energy said it hadn’t been contacted....
This column was originally published on RealMoney on Jan. 12 at 2:33 p.m. ET. It’s being republished as a bonus for TheStreet.com readers. For more information about subscribing to RealMoney, please click here. It’s not always easy being the 800-pound gorilla in an industry, especially if you’re Electronic Arts (ERTS) . The video-game titan is arguably in the toughest strategic position among all of the publicly traded video-game software companies. The console cycle is...
Booyah Breakdown: It’s a Wash
January 18, 2007 on 1:01 pm | In Finance |
It was a big week for the health care and biotech industries.
With a change in power in Congress, the Democrats have launched their “100-hour plan,” which includes a focus on Medicare drug pricing and reversing the ban on stem-cell research. Also, California Gov. Arnold Schwarzenegger unveiled a plan for universal health care insurance for the country’s most populous state.
On Thursday, a bill to reverse the ban on federal funding on research on new lines of embryonic stem cells passed the House by a margin of 253 to 174. While this may not immediately include enough Republican votes to override the president’s veto threat, that may change after the U.S. Senate passes a more moderate bill and negotiates, in conference committee, enough compromises to capture a veto-proof majority of both chambers.
The stock market prices companies on the basis of where business conditions might be six months or more into the future. Drug discovery at biotechnology companies can take years, and the market sees a favorable legislative environment for these companies developing.
On the other hand, established drugmakers such as Merck ( MRK) and Pfizer ( PFE) are paying high premiums to buy smaller biotechnology companies in an attempt to replace drugs that are coming off patent protection.
While this may be good for holders of biotechnology stocks and funds, it has the potential to dilute the value of pharmaceutical companies. This, combined with an attempt by some members of Congress to reduce the revenue these companies receive from Medicare for their existing drugs, puts big drug stocks in a negative light.
The impact of Schwarzenegger’s universal health care insurance plan for California on health and biotech stocks is less clear. Hospitals, for instance, would have to pay a 4% fee into the system, however it would eliminate most of the unpaid emergency room care given to the uninsured.
For drug companies, this may be a long-term positive, as children or adults who had previously stayed out of the preventive health care industry would be able to purchase prescription drugs. Or, if the critics of the plan are right, drug companies will produce fewer innovative new drugs if they are restricted on pricing.
Top-Performing Health Care and Biotech Funds
Fund Ticker Rating Fund Type 1 Week Total Return
ProFunds Biotech Ultrasec-IV BIPIX E Open-End Fund 2.84%
Biotech HOLDRs Trust BBH D+ ETF 2.63%
Saratoga Health and Biotech-B SHPBX E+ Open-End Fund 2.49%
Rydex Series Biotech-ADV RYOAX E- Open-End Fund 2.42%
Live Oak Health Sciences FD LOGSX D- Open-End Fund 2.36%
GenomicsFund.com GENEX E+ Open-End Fund 2.13%
Franklin Biotechnology DIS-A FBDIX E Open-End Fund 2.09%
Fidelity ADV Biotechnology-A FBTAX E Open-End Fund 2.01%
Fidelity Select Biotechnology FBIOX E Open-End Fund 1.95%
SunAmerica Bio/Hlth FD-A SBHAX E- Open-End Fund 1.90%
Source: Bloomberg
ProFunds Biotechnology UltraSector ProFund was the big winner this week, climbing 2.84% in the five trading days from the close on Thursday, Jan. 4 to the close on Jan. 11.
The fund is designed to return 150% of the movement of the Dow Jones U.S. Biotechnology Index. With weightings of 80.0% biotechnology, 17.8% pharmaceutical, and 1.8% health care products stocks, the top holdings are Amgen (AMGN) , Genentech (DNA) , Gilead Sciences (GILD) and Genzyme (GENZ) .
Next on the list is the exchange-traded fund Biotech HOLDRs Trust (BBH) , which gained 2.63%. It holds the same companies listed above for BIPIX as its largest holdings, along with Biogen Idec (BIIB) , Applera (ABI) , and Medimmune ( MEDI) . Almost 81% of the fund is concentrated in biotechnology companies and more than 15% in pharmaceutical stocks.
Worst-Performing Health Care and Biotech Funds
Fund Ticker Rating Fund Type 1 Week Total Return
IShares S&P Glbl Healthcare IXJ C- ETF -1.15%
Fidelity Select Pharma Port FPHAX D Open-End Fund -0.27%
ProFunds Pharm Ultrasectr-IV PHPIX E- Open-End Fund -0.19%
Pharmaceutical HOLDRs Trust PPH E+ ETF -0.10%
BlackRock Healthcare Fund-I MAHCX E Open-End Fund 0.00%
H&Q Life Sciences Investrs HQL E- Closed-End Fund 0.00%
Fidelity ADV Health Care-T FACTX D Open-End Fund 0.09%
John Hancock Hlth Sciences-A JHGRX E Open-End Fund 0.10%
Vanguard Health Care Fnd-INV VGHCX C Open-End Fund 0.11%
Quaker Bio Pharm-Health FD-A QBPAX D+ Open-End Fund 0.23%
Source: Bloomberg
The health care fund that took the biggest hit this week is the iShares S&P Global Healthcare Sector Index Fund ( IXJ) , an ETF that gave back 1.15% for the five trading days ending Jan. 11. The fund holds 18.0% in health care products, 8.4% in health care services and 6.7% biotechnology. But its largest concentration is in pharmaceuticals at 63.9%, including Johnson & Johnson (JNJ) , Pfizer, Novartis (NVS) , and GlaxoSmithKline (GSK) .
With even more exposure to pharmaceutical stocks, at 94.8%, the Fidelity Select Pharmaceuticals Portfolio is also seen to be at risk from the Democratic-controlled Congress’ attempt to mandate that Medicare negotiate for lower prescription drug prices. The fund’s top holding is Merck, followed by Pfizer, Novartis, Bristol-Myers Squibb (BMY) and Eli Lilly (LLY) .
This has been a good week for funds holding biotechnology stocks. Plus, the long-term seems brighter with the health care industry spending considerable time and money looking inward to see how to become more efficient in the delivery of care and the purchasing of drugs and other health care products.
Unlike last week’s utility funds, health care and biotechnology funds have significantly higher levels of volatility. This accounts for the comparatively low ratings generated by our risk-adjusted return mutual fund model for the best and worst performers. If the president’s threatened vetoes are sustained, the worst performers above could easily switch places with the best performers in the short run.
No Comments yet
Sorry, the comment form is closed at this time.
NYSE plans test of real-time Web quotes »NEW YORK - The New York Stock Exchange plans a pilot program later this year that could bring real-time stock quotes to Internet users, The Wall Street Journal reported on Friday. The NYSE Group Inc. unit is expected to file a proposal with the U.S. Securities and Exchange Commission on Friday, the Journal reported. If the SEC approves the plan, the NYSE will allow Web sites to publish trade prices with nearly no delay in return for payments of $100,000 a month, the Journal reported. The...