Value Investing News

 These are the results of a stock screen that looks for companies that produce consistent free cash flows over the past seven years and are trading at low prices relative to their normalized earnings. The goal here is to find cheap stocks in companies that are easier to value.

Maxygen is a development stage biotech whose existence on the Magic Formula screen is due to a one time, non-recurring cash payment. The stock is extremely speculative and should be avoided.

John Calamos has been trading convertible bonds for four decades. He says he's never seen them so cheap.

Despite near term challenges related to concerns over it's blockbuster anemia drugs, Amgen's huge R&D budget, deep pipeline, and the bright outlook for biotechnology make it an attractive buy for any portfolio.

An update on what has been going on since my first post on Amgen.

The recent sell off has made Amgen a value play.

Shares of Amgen (AMGN), the largest biotechnology company in the world, have been slammed in recent weeks and the stock is trading at valuations not seen in years, if ever.

Amgen's stock has been caught up in the Cycle of Negativity. If you read hundreds of sell-side analyst reports, you see that all stocks are linked to the PE multiple of the overall market. Jeff Miller at "A Dash of Insight" explains why this may present a buying opportunity.

The biotech industry has failed in its attempt to function as a science-based business

As investors rebalance their portfolios for the New Year, I figured it would be a good idea to share the list of ten stocks that are currently at the top of my watch list.

Followers of the sector know very well that biotech stocks have traditionally traded at premiums to their big pharma counterparts, mainly due to the fact that they tend to be smaller, and therefore one big product breakthrough can have a dramatic effect on the company, and fuel substantially higher earnings growth. It appears in today's market, however, that the two subsets of healthcare have converged as far as valuations go. As a result, I think there are opportunities for investors to capitalize.

For those investors not keen on spending countless hours pouring over financial statements and company profiles, not to mention the confusing scientific and technical jargon that biotech companies harbor in their annual reports, Exchange Traded Funds (ETFs) may be the better choice for investing in the biotechnology industry.