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I hated it, but I had to sell Genetech (DNA) to Roche March 27, 2009

Posted by deminvest in DNA Genetech, growth stock, nasdaq, Nasdaq stock, stocks.
1 comment so far

I hate when a company that I like and that hasn’t given me my well deserved 40% gain is bought by some bigger fish.

This is what happened to my 12 DNA shares I had bought at $81 each in April 2007.

From various experiences, I realized that, when there is some company buying shares I own, it is better to sell them on the market before the sell out actually happens.


One more growth stock – Genetech (DNA) – is becoming dirt cheap April 12, 2007

Posted by deminvest in DNA Genetech, growth stock, investment, stock I own, stocks.



This continues to amaze me. Maybe because of old minded analysts looking back to the past bubble, maybe because there is some irrational fear, a wonder is happening:

growth stock are becoming dirt cheap: their revenue and their profits continue to growth, but stock-price lags.

Something really funny is happening… Simple Math: if earning increase, but price doesn’t, the P/E ratio goes down and down and down…

If this goes on, eventually growth stocks will have same (waiting enough even lower…) P/E ratio of lame stock of companies that don’t grow!

Last week I discussed how this weird funny thing is happening with Google and Ebay (I must not forget to buy a pair more GOOG shares).

I thought it was because the “old big men” are afraid of the Internet… But today I found out Genetech (DNA), the Biotech drug company has a forward P/E of 24 only!

A company that is growing Qtrly Revenue Growth (yoy) 43.40% and Qtrly Earnings Growth (yoy):75.10% and Posted today earnings beating expectations, is such a bargain!


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