Stockwatch: Grasping at growth in earnings season
This article was originally published in Scrip
Executive Summary
As the second-quarter earnings season kicked off last week the stock market applauded Greece for continuing to stunt the euro by not Grexiting and China's miraculous government figures on the growth of its economy. It is, after all, growth that remains on everyone's mind because earnings season is supposed to be the appreciation of the growth of sales and earnings. If supporters of the current valuations in biotech are to be believed, it is partly the growth in sales at big biotechnology companies over the last few years that has enabled many much smaller companies to IPO and sell waves of initial and secondary stock offerings to investors.
You may also be interested in...
Stock Watch: Risk And The Pharmaceutical Discount Rate
In contrast to the SEC’s view that public companies’ regulatory filings give investors all the information needed to make an investment decision, the discount rate used to value a company may not reflect all its risks.
Stock Watch: Pharma Businesses That Leave Consumer Behind
Healthcare conglomerates that divorce consumer, animal health and even generics businesses from their pure-play branded pharmaceutical groups could leave a less diversified and riskier sector in uncertain times. But the advantages are apparent.
Stock Watch: Acadia And Amylyx Trial Failures Were No Shock
The overused phrase ‘pipeline in a product’ translates to ‘disappointment in a product’ when the number of indications in the pipeline contracts towards zero.