Healthcare Rules

I have been taking a harder look at Thermo Fisher and Millipore, the healthcare equipment makers. The multiples that these growth businesses trade at is amazing. Why people are paying sky high multiples for economically sensitive stocks when these type of stocks are available bewilders me. I want to find stocks to own outside of healthcare but with these prices its a difficult task.

7 comments:

Anonymous said...

Right now,investors look at the strongest, deepest-moated businesses and think of everything that could go wrong, and they look at speculative businesses with weak balance sheets and see everything that could go right. I also see the best bargains as being in health care--well-defended growth businesses with impregnable balance sheets.

nicasurfer said...

Take a look at FPL if you are bottom picking.

nicasurfer said...

Tsachy take a look at ISRG, i am sepculating on the $320 march puts here.

Tsachy Mishal said...

Anonymous,

I could not have said it better.

Tsachy Mishal said...

nicasurfer,
Will take a look at FPL. ISRG is one of the only pricey healthcare stocks out there. You will probably be right eventually.

Anonymous said...

ISRG isn't a stock to short, unless you know something. It's always been expensive. It also has an incredible business, with lots of recurring revenue from consumables.

nicasurfer said...

Well the weekly chart looks stretched and the daily has a bearish divergence.

Also the insiders have been selling.

Finnally all the buzz is about lowering health care costs. ISRG has some of the most expensive products out there.

I very well could be wrong and will happily leave the trade just don't see much more upside.

Thanks for the warning.