Fortunately, I own both QCOM and ELN. I have added to my position in ELN. I feel that alot of money is being transfered and kept in the techs because of the santa claus rally. This is probably helping to keep things quiet in other sectors like the drug delivery and pharma. As soon as the tech start to correct a little, I feel we should some some money flow back to this sector. I think its just a timing thing. We should be flying high in the near future.
too, but chickened out and took some of that money off the table this morning by writing covered LEAPs on part of my position. But I have only been adding to ELN. Biggest "sure thing" I've ever seen. I have a lot of faith in Q also, but it has been "discovered" in a very big way. Time to cut away from the herd a little.
Two factors seem to be inhibiting the drug sector lately. One is the poor pipeline for the major pharm's. The other is that Congress has noticed that drug manufacturers have a higher profit margin and pay less taxes proportionately, compare to other businesses. Congress is suppose to discuss this situation in January.
Being an Irish company, Elan does very well with their tax benefits.
Hopefully, Congress will do nothing stupid like price controls. The winning drugs help pay for the losers that do not make it to market, which are in the big majority. Getting a drug thru the FDA is no easy task, and it's expensive.
The drug sector will probably rally when Congress makes it up its mind. It seems like a good long term play.