Schoenbaum called biotech is "a large, large sector" with hundreds of companies, "most of which have no profits and no earnings. They're basically options vehicles based on a drug that will report data out in a few months. And certainly, in 2012 and 2013, it was an unprecedented bull run in biotech. For some of those stocks, there's probably too much optimism baked in.
"But of course, in the giant universe of biotech stocks, you're going to find stocks that are overvalued and you're going to find some that are undervalued."
Schoenbaum added that he didn't see a bubble.
"Overall, I don't think the data suggest that we're in for a giant crash," he said.
Did Fed Chair Janet Yellen catch something biotech's top analyst missed?
As a companion to Congressional testimony earlier this week, the Yellen-led Fed opined on stock valuations.
"Valuation metrics in some sectors do appear substantially stretched—particularly those for smaller firms in the social media and biotechnology industries, despite a notable downturn in equity prices for such firms early in the year," a report said.
But a top-ranked biotech analyst took issue with the Federal Reserve's views.
"When I look at P/E ratios in biotech, I'm really asking the question, 'Are we in a bubble?' 'cause I think what the Fed perhaps – and I'm not a Fed observer – but I'm told what the Fed is looking for perhaps is signs of bubble," ISI Group's Mark Schoenbaum said Friday on CNBC's "Halftime Report."
"And on that, according to my data, I would argue that the answer is clearly no. Now, is biotech cheap? Is it a real steal here? That's a totally different debate."
Schoenbaum, named the No. 1 analyst in the biotech sector for the past nine years by Institutional Investor, published an analyst note that resembled an open letter to the Fed chair.
In it, he wrote: "Dr. Yellen — Thank you for sharing your thoughts recently on the biotech sector. … You stated that biotechnology valuations are 'stretched, with ratios of prices to forward earnings remaining high relative to historical norms.'"
As evidence, Schoenbaum included Russell 1000 data from biotech stocks dating back to 1978, "and my data show that the current ratio is roughly in line with the historical median and is approximately 40% below the peak.
"Please tell me what I'm missing, Dr. Yellen," he wrote.
Schoenbaum added that he had a "great deal of respect" for Yellen.
"However, we have a different view, perhaps, of the data on price-to-earnings ratios," he said.
Schoenbaum called biotech is "a large, large sector" with hundreds of companies, "most of which have no profits and no earnings. They're basically
"Why don't you believe me?" Terry, once again, why would anyone believe you. Multiple IDs, no facts, distortions, tons of BS. With that engineering background, you would think you could figure it out. Maybe if you went to one ID, you wouldn't need your bulletin board to keep track of all your phony IDs. Thats the one thing about liars, is that they can't remember which lie they told last.
"Why don't you believe me?" Terry, once again, why would anyone believe you. Multiple IDs, no facts, distortions, tons of BS. With that engineering background, you would think you could figure it out. Maybe if you went to one ID, you wouldn't need your bulletin board to keep track of all your phony IDs. Thats the one thing about liars, is that they can't remeber which lie they told last
Terry. You wish, as you think it would give you cover. Just stick to one ID, and you could do all the bragging and boasting under your name, spewing all the BS under one name, and distorting facts under one name. You wouldn't need the bulletin board to keep all your names straight. Just think, no more checking off when I used that name last. A simple system for a simple mind!
Send it to Insmed's Investor Relations and see what they tell you. It's probably not two years old since Covidien spun off the old Mallinckrodt in July 2013, and they started using the old name after that. So, would that list be relevant today? If the information is correct, how would that affect the share prices?
Actually Terry, you are roundly ridiculed whenever you post, because you present no FACTS. As a supposed retired engineer who surfs all the time, I'm surprised you didn't learn about facts in engineering school.
Terry has a contact at Yahoo, which is why he operates the way he does. When you have a paid agenda, this is what happens. We'll see who gets the last laugh.
Prove the statements are false. You can't because you don't deal in facts. Just suppositions and opinions. Iplex is an asset. In your opinion, that asset is not worth a dime, but to others who can evaluate a business and it's property know Iplex has value. Would you bet your basement housing that Insmed will just give away an asset that is worth millions. Maybe to an ALS victim it has value, but to you and your opinion, it is worth nothing. Isn't that right Terry?
Blueeyed. You might check with Terry or one of his multiple IDs He knows everything, and is never wrong. The best part is that he never has to supply facts. We just have to believe what ever BS he throws on the wall, and hopes that it sticks. Yep, Terry's the one!!
Date ........ Open ... Close ... Shares traded
June 17 ... 12.79 ... 12.46 ... 350,700
June 18 ... 16.24 ... 17.78 ... 12,068,380
Terry: So far this year Insmed is up 3% - it will be CRUSHED in the next week. Stocks that go up 40% never last.2 dollars were shorts who will kill it They have plenty of shares to do it. I sold.
June 19 ... 17.87 ... 18.80 ... 5,222,525
June 20 ... 18.85 ... 18.74 ... 2,446,989
June 23 ... 18.70 ... 18.52 ... 1,092,454
June 24 ... 18.59 ... 18.50 ... 692,859
June 25 ... 18.50 ... 18.88 ... 1,121,056
June 26 ... 18.85 ... 19.32 ... 886,905
June 27 ... 19.20 ... 19.51 ... 1,150,790
June 30 ... 19.40 ... 19.98 ... 669,755
July 1 ... 19.97 ... 20.04 ... 583,325
Terry, how did you come up with that number? Oh, I know. Another guess!! Don't you get tired of your misleading BS?