Questor investment trust bargains: after a long slump, biotech is back on the rise. These are the trusts to snap up
Almost a year ago we called the bottom of the market in biotech stocks and advised readers to buy our two preferred trusts in this sector. As so often in the stock market, our analysis was sound but our timing was faulty.
Specifically, we said Biotech Growth looked good value at £11.70, as did International Biotech at 715p. Their respective share prices are now 967p (an 17.4pc fall) and 669p (6.4pc lower). Both were trading at about par value, compared with discounts now of 5.7pc and 5.5pc respectively.
If Questor, therefore, says to you “well, this shows that now is an even better time to buy”, you are entitled to retort: “What’s to stop the same thing happening and the share prices falling further?”
That is always a pertinent question and one that should be addressed whenever there is a temptation to buy a stock that has fallen. Our answer on this occasion is that there are clear signs in the biotechnology market more broadly that a recovery is establishing itself.