Today's Issue of the Growth Stock Wire

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Biotech Is Setting Up for Another 1,347% Rally By Ian Davis, editor, Quant Trader March 24 , 2008 "This nasty man-made microbe, hatched in the labs of Wall Street, surfaces every few years to prey on susceptible (i.e., gullible) investors. Symptoms include feverish optimism followed by cold chills of reality." – Time Magazine, 1997 Spectacular booms and busts are the norm for biotech stocks... Whenever a breakthrough in cloning, genetic engineering, or stem-cell treatments bubbles up out of a lab and finds itself on the front page of a newspaper, investors go temporarily insane. They put on their blinders and imagine the life-altering, society-changing possibilities that will (eventually, maybe) emerge from the latest breakthrough. They set to work building their imaginary castles in the sky. Then a year or two passes and the shine wears off the breakthrough. This is when investors realize the technology is still in its infancy, and profits probably won't emerge for years. The dream goes stale, and the bubble bursts. Since 1983, biotech stocks have exploded higher in four triple-digit rallies and one quadruple-digit rally.The sector has also routinely plummeted. Since 1983, the biotech sector has lost more than half its value four times. The following chart shows the performance of the Datastream Biotech Index since 1983. As you can see, roughly every 18 months to three years, biotech companies undergo an expansion or contraction. These cyclical moves can be quite dramatic. For example, over the last five expansions, the smallest biotech rally produced a return of 187%. Here's a rundown

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