Post by
Carlos66 on Nov 23, 2015 4:36pm
stock specific or sector specific?
most stocks in the sector are still in a downtrend & no trend reversal in sight despite beneficial NRs about drug or trial approval successes, M&A etc..
Growth by acquisition strategy will not work forever. The law of large numbers & everything.
Short sellers, algos, volatile mkts where overbought ot oversold situations occur more frequently have caused havoc to most stocks in the healthcare sector.
Even United Health has lost a lot of $$$ in Obamacare & is leaving. What if others leave?
What will happen to other healthcare service providers & not directly connected to drug prices like PLI, PHM etc..
Doing deals for tax inversions will & have raised the ire of US lawmakers. Right now on CNBC democratic congressman Levins being interviewed said...'individuals can't change their home addresses just to get a better tax rate; so companies should not be able to do it either'.
Resistance to high drug prices (you can thank that forgotten drug company that started it all & you can thank Hiliary Clinton for blowing it all out of proportion too) from people, PBMs etc. & the inability of drug companies to lower costs (other than to lay off people) will change the sentiment (if it hasn't started to already) for the sector & investment priorities by MMs.
The game for these companies maybe over & growth by organic means maybe the buzzword from now on & if so these companies are challenged. LOOK at the Allergan & Pfizer trying to join. They may be seeing the writing on the wall as far as cost cutting shrinking margins etc., but the deal will probably not get done anyway. Congress will see to that I fear.
Sector still remains out of favour.
carlos
Comment by
sunshine7 on Nov 23, 2015 4:55pm
Sounds like the HC world is near its end Carlos. A contrarian would look at the and say its a perfect time to buy.
Comment by
cashflow98 on Nov 23, 2015 4:58pm
When grown men are crying and there is blood on the street you BACK UP THE TRUCK....now's the time to be buying HC....way too many HC lobbyists in congress to worry about the industry IMO
Comment by
argentia77 on Nov 23, 2015 4:57pm
I hope your outlook on the health care sector does not turn out to be as bleak as that.