Motely Fool Agrees: HQL A Great CEF!
Back on October 23 BioHealth Investor (BHI) recommended H&Q Life Science (HQL) as a great biomedical closed-ended fund to invest in, rather than pick single risky stocks.
Four days later the Alligator Investor made his case against HQL. Did he provide decent points of view? Not really. In fact, the Alligator agreed with BHI on many points, but cited that his intuition says that something is wrong with HQL. Basing your investment decisions on intuition alone is a form of gambling, but that is another argument for another time.
Well, on Thursday Jim Fink, writing for The Motley Fool, not only featured HQL as a great healthcare ETF, but chose it as the best ETF for 2007!
Mr.Fink's article goes far and beyond BHI's in breaking down HQL and comparing it to both Biotech HOLDRs (BBH) and iShares Nasdaq Biotechnology (IBB).
He points out, just as BHI did, that HQL pays out a dividend of 8%, which both BBH and IBB do not.
He also makes the argument that HQL is more diversified, with none of the top holdings taking up more than 5% of the total portfolio.
HQL also outperformed both BBH and IBB, and is 7% undervalued as compared to its Net Asset Value (NAV).
For all those reasons HQL continues to look favorable, and is the only BHI stock pick that has not gained substantially. Its time is coming.
2007 looks to be very promising for the biotechnology industry, and what better way to invest in it than to choose the industry's best comprehensive exchange traded fund.
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Back on October 23 BioHealth Investor (BHI) recommended H&Q Life Science (HQL) as a great biomedical closed-ended fund to invest in, rather than pick single risky stocks.
Four days later the Alligator Investor made his case against HQL. Did he provide decent points of view? Not really. In fact, the Alligator agreed with BHI on many points, but cited that his intuition says that something is wrong with HQL. Basing your investment decisions on intuition alone is a form of gambling, but that is another argument for another time.
Well, on Thursday Jim Fink, writing for The Motley Fool, not only featured HQL as a great healthcare ETF, but chose it as the best ETF for 2007!
Mr.Fink's article goes far and beyond BHI's in breaking down HQL and comparing it to both Biotech HOLDRs (BBH) and iShares Nasdaq Biotechnology (IBB).
He points out, just as BHI did, that HQL pays out a dividend of 8%, which both BBH and IBB do not.
He also makes the argument that HQL is more diversified, with none of the top holdings taking up more than 5% of the total portfolio.
HQL also outperformed both BBH and IBB, and is 7% undervalued as compared to its Net Asset Value (NAV).
For all those reasons HQL continues to look favorable, and is the only BHI stock pick that has not gained substantially. Its time is coming.
2007 looks to be very promising for the biotechnology industry, and what better way to invest in it than to choose the industry's best comprehensive exchange traded fund.
_
posted by Nico at
9:34 PM
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