My RSS Feeds
It's Celgene Time!
Celgene is climbing to all-time highs above $59. The P/E of about 400 listed at Yahoo! looks sky high, and even the forward P/E over 50 looks too high for most people - at first glance. Is this a stock to short? I don't think so. Those in the know understand the wide-open avenue to vastly increased reveneues that Celgene is facing with its powerful pipeline of anti-cancer drugs. They really are one of the best-managed pharmaceuticals out there with serious innovation not just in their drugs, but in their business models, their educational materials, and even their approach to stem cell research. This is a company all about growth, huge growth, and the smart money is long on Celgene. Good time to short? No way. Good time to buy? I think so. You can wait for a dip of 5-10%, perhaps, but you may miss the train.
Yes, there is always risk, but this is one of the best bets out there, in my opinion.
If you are only going to pick five stocks to invest in, I'd make this one one of them. Then add an energy stock like Frontier Oil (FTO) or Marathon (MRO), a precious metals stock like Goldcorp (GG) or Silver Wheaton, and then something strong from a couple other sectors (PW Eagle - PWEI, perhaps, or VE or COL). But energy, pharma/biotech, and precious metals are where I think you're going to do really well over the coming year or two.