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Healthcare Stocks - Defensive strategy

Comments

  • #2
    markjbloggs
    Registered Users, Registered Users 2 Posts: 294 ✭✭markjbloggs


    Lexus1976 wrote: »
    Just sold my existing shares to lock in profits and have now purchased 2 defensive stocks.

    Elan
    Elan lifts outlook after Q3 profit

    http://www.rte.ie/business/2009/1021/elan.html

    United Drug
    http://www.united-drug.ie/

    Both are relatively cheap and have missed out on the rally over the last 7 months. ;)

    The term "defensive" when applied to healthcare makes my blood boil - it implies a degree of security in this sector which is simply not the case. My largest losses have always been in healthcare, due to drug trial failures, lawsuits and treatment related deaths. These are inherently unknowable events and can have massive negative implications for healthcare stocks. And they happen out of the blue - one day everything is fine, next day you wake up to another PML death, lawsuit by low cost drug manufacturer or Phase III trial not meeting endpoint.

    And all this is before analysing the merits of the individual stock vs standard metrics!!!

    Be very cautious with healthcare, and you will live longer. Do not expect it to be the port in a storm that it is often portrayed to be...


  • #3
    Smcgie
    Registered Users, Registered Users 2 Posts: 1,379 ✭✭✭Smcgie


    I couldn't agree with above more!


  • #4
    pocketdooz
    Registered Users, Registered Users 2 Posts: 1,559 ✭✭✭pocketdooz


    Lexus1976 wrote: »
    Just sold my existing shares to lock in profits and have now purchased 2 defensive stocks.

    Elan
    Elan lifts outlook after Q3 profit

    http://www.rte.ie/business/2009/1021/elan.html

    United Drug
    http://www.united-drug.ie/

    Both are relatively cheap and have missed out on the rally over the last 7 months. ;)

    Elan is not a defensive stock. Even a quick curosry look at some research will tell you this. It's one of the most volatile big-cap stocks in the world.

    Dont know anything about United Drug.

    .


  • #5
    Lexus1976
    Closed Accounts Posts: 702 ✭✭✭Lexus1976


    Time will tell if I made the right decision. I'm confident :)


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