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Current DateTime: 06:21:41 30 Nov 2009
LinksList Documentid: 30328029

CNBC Stock Blog

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Jan.21
12:00 PM ET
Wednesday, 21 Jan 2009
A Beaker Full Of Biotech Stocks
Posted By:Andrew Fisher
Companies:Qiagen N.V.

Sarat Sethi of Douglas C. Lane & Associates thinks investors ought to buy stocks, but must choose very carefully before they do.

"I think it's too early to get into areas where companies are too levered, because capital markets are still not fully open," he told CNBC. "I would stick with the consumer staples, companies that have good international diversification, and health care, especially life sciences and medical products."

Recommendations:

The medical-products field is his entry point into biotechnology.

"The way you play biotech is, you play the companies they use; if they're going to use a beaker that costs a hundred grand, you buy the companies that produce the equipment," he said. 

"You buy companies like Millipore [MIL  Loading...      ()   ] or Qiagen [QGEN  Loading...      ()   ], where you know their products are going to be used across a wide range of biopharma industries."

Disclosures:

Disclosure information for Sarat Sethi was not immediately available.

JeeYeon Park contributed to this article.

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© 2009 CNBC.com

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