Long-time Favorite Is Still a Buy

Article Excerpt

We have generally stayed out of drug stocks in this decade, and that’s a good thing for our subscribers. Drug stock enthusiasts focus on the rising demand they foresee from aging baby boomers, for newly developed drugs which are more effective than older ones. They overlook the drawbacks to investment in the drug industry, which concern us more. These drawbacks include high research and development costs, with no sure payoff; limited patent life; and competition from still newer drugs. Starting from high stock-price levels and laboring under these disadvantages, most drug stocks have been weak-to-miserable performers for years. Drug makers will one day offer enough value to tempt us back into investing in them. For now, we will stick with long-time favorite Beckman Coulter. It grows along with rising health concerns. But every new equipment sale it makes gives it a new customer for lab supplies. BECKMAN COULTER INC. $64 (New York symbol BEC; Conservative Growth Portfolio, Manufacturing & Industry sector; Shares outstanding:…