Williamstown, MA, July 23, 2008 --(PR.com
)-- As biotech begins this week with a jump start, Don Dion, publisher of ETF Momentum Tracker, announced that iShares Nasdaq Biotechnology (IBB) has moved up his Sector Momentum Table.
“IBB stood at position 14 on the ETF Momentum Tracker Table last week, up from 26 three weeks earlier, Dion said. “If IBB’s strong open this morning is any indication,” Dion noted, “IBB may continue to climb in our ratings.”
As biotech investors await earnings from Merck (MRK) and Schering-Plough (SGP), slated for after the bell, Dion believes that biotech companies that comprise IBB, such as Amgen, could soon be benefiting from their own good news. “A study, released on Sunday, showed improved language recall for Alzheimer’s patients treated with Enbrel,” Dion noted, “this drug is co-marketed by Wyeth, and IBB’s top holding, Amgen.”
IBB invests in around 150 biotech stocks with market caps larger than $200 million. The biotech sector is filled with small research-oriented firms that are ripe for growth but weighted with risk. “IBB usually places about a third of its assets in those mid- and small-cap firms,” Dion said, “and gives the giants of the sector such as Amgen, the remainder.”
ETF Momentum Tracker is a member of Fidelity Independent Adviser’s family of publications. With more than 70,000 subscribers in the United States and 29 other countries, Fidelity Independent Adviser publishes four monthly newsletters and three weekly newsletters. Its flagship publication, Fidelity Independent Adviser, has been published monthly for 11 years and reaches 40,000 subscribers.
ETF Momentum Tracker’s latest edition, released July 16, included a profile of IBB. In his profile, Dion said advances in Amgen’s Nplate and denosumab could benefit IBB’s top holding. For more information on Dion’s weekly profiles, visit http://www.fidelityadviser.com/readMe_ETF.asp
Will IBB have the momentum to hold its position on the ETF Momentum Tracker Table? “Whether IBB can continue building momentum will largely depend on how well products like dDenosumab and Nplate fare as they negotiate the FDA’s approval process,” Dion noted. “That said, other factors are likely to influence the fund’s performance as well: whether the health care sector’s defensive qualities continue to appeal to investors; how deeply the credit crisis impairs biotech firms’ access to cash; and—in the longer term—the possible changes to the nation’s health care system that could come with a new presidential administration.”
About Don Dion: Don Dion is the publisher of the Fidelity Independent Adviser family of newsletters, which provides to a broad range of investors Don’s commentary on the financial markets, with a specific emphasis on mutual funds and exchange-traded funds. With more than 70,000 subscribers in the United States and 29 other countries, Fidelity Independent Adviser publishes four monthly newsletters and three weekly newsletters. Its flagship publication, Fidelity Independent Adviser, has been published monthly for 11 years and reaches 40,000 subscribers. http://store.fidelityindependentadviser.com/fidinadnew.html
Mr. Dion is also president and founder of Dion Money Management, a fee-based investment advisory firm to affluent individuals, families and nonprofit organizations, where he is responsible for setting investment policy, creating custom portfolios and overseeing the performance of client accounts. Founded in 1996 and based in Williamstown, Massachusetts, Dion Money Management manages more than $715 million in assets for clients in 49 states and 11 countries. http://www.dionmm.com/