by Travis Johnson, Stock Gumshoe | July 10, 2009 2:11 pm
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Nice write-up Gumshoe, but the “Fool” lives up to its name again. The Biomed/Genetics sector (where these stocks reside) is favored technically. Without getting into details, these stocks are technical dogs. They are technical chart laggards in a favored sector. In a sector like this, you especially have to beware of the “story”. The chart pictures could certainly change for these two (AFFX and ILMN), but right now they should be avoided.
There are PLENTY of good looking charts in the sector, all performing better than ILMN. Here are a dozen….
ACCL, ARQL, CGEN, CHTP, ENZN, SVNT, RGEN, NYMX, NVAX, MNKD, JAZZ, GERD. (I’d throw in DNDN but it’s way overbought.)
Someone will say that these companies don’t all compete with ILMN. So what…..every company has a “story”; and a clever “financial journalist” could easily do a rousing write-up on any of these true sector performers. Be careful where you buy these, as I’ve said, many are overbought. But go with strength within the sector and you will be rewarded.
Biotechs kinda scare me. I got my clocked cleaned in SQNM back in the bubble days but I know one thing.
Navallier has ILMN listed in his Emerging Growth portfolio as a conservative pick. Currently, it has a C rating which it may fall off of his list if it drops one more grade.
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