Because Genentech is a leading developer of cancer therapies, some doctors also fear that the company’s pricing plans for Avastin – around $8,800 a month – may encourage other companies to charge more for their own oncology drugs. Alex Berenson Read Quote
Whatever the potential pitfalls, banks are increasingly enthusiastic about venture capital, particularly in new companies with strong prospects in fields like health care and technology. Alex Berenson Read Quote
Big banks have long had private equity divisions that put up capital for deals too complex or risky for individual shareholders to finance. Alex Berenson Read Quote
Traditionally, companies have made major announcements before or after the close of trading so that all interested investors and analysts are apprised of the news before trading resumes in their stocks. Alex Berenson Read Quote
Of all the big Internet companies, Yahoo is the most highly valued on a price-earnings and price-sales basis. Alex Berenson Read Quote
In market valuation, Yahoo is worth about as much Walt Disney and the News Corporation combined. Alex Berenson Read Quote
Rising interest rates are considered bad for stocks because they raise the cost of doing business and depress corporate earnings and because higher yields make bonds relatively more attractive than stocks to investors. Alex Berenson Read Quote
It’s one of the fundamental principles of the stock market: When interest rates go up, stocks go down. And along with financial companies and cyclicals, technology companies – with their sky-high price-to-earnings multiples – should be among the biggest losers in an environment of rising rates. Alex Berenson Read Quote
Of course, the discounting of future earnings should hurt all stocks. But it should hurt technology stocks more than others, because so many of them are valued at extremely high levels relative to their current earnings. Alex Berenson Read Quote
