Strike up a conversation with anyone, anywhere and sooner or later you will get around to the fact that they, or someone they know, is taking some form of prescription drugs. While it is not the greatest thing to admit, America is indeed on board the pharmaceutical train and the train doesn’t seem to be stopping at any station anytime soon.
For awhile, investing in these drug stocks was the thing to do. They were performing well. People were believing in the product. After all, Viagra is the second coming, right? But this mad-rush for investing and buying up shares slowed due to lack of new drug discoveries, over-saturation and what looked like a bleak future. People began to lose money on their investments and suddenly taking anti-depressants, rather than investing in them, looked like a much better alternative.
However, in recent months there are a few drug stocks that look a bit promising for those who are willing to take a risk again. After all, we are a society driven by pharmaceutical ads on TV, Pfizer pens and coffee mugs and doctors who receive kick backs for suggesting new drugs. The “trend” doesn’t seem to be fading anytime soon and it looks like the folks at Pfizer, Allergan and Novartis (a Swiss pharmaceutical company) know this as well.
While Pfizer (PFE) really doesn’t have anything “new” to sell, so to speak, it has performed well over recent months. Nowhere near its peak position during the Viagra days, it is still garnering a backing from investors. Truthfully, Pfizer has been around for quite some time and doesn’t appear to be going anywhere. Just don’t expect this to give you a huge return on investment.
It is, Allergan (AGN), however, that may stand the test of time in the next few months due to what it offers the market. After all, if there is one thing America seems to feed off of more than money and pharmaceutical ads, it is the business of beauty and eternal youth. Allergan sells just that. The company is responsible for Botox and breast implants – two things Hollywood couldn’t live without, so if you plan to invest this could be your best bet. Hopefully it keeps your money looking just as fit and firm as its product users.
Lastly, Novartis (NVS), which deals with generics and eye care products, among other things, is doing very well. In the past month, it has reached a company-wide high and with its leading hypertension and cancer drugs, the future of this stock looks very bright.
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