iShares NASDAQ Biotechnology Index (IBB) gets attention

Kevin Depew, executive editor at Minyanville.com brought the spotlight on iShares NASDAQ Biotechnology Index (ETF) (AMEX:IBB) yesterday. Shares of IBB are up 3% since Tuesday and trade at $83, so let's take a further look.

Here's what Kevin had to say:

Kangas: OK. What areas are you looking for, for good upside potential?

Depew: Well, Paul, we're getting close to the time when there is a seasonal move in biotech. It started a little bit earlier this year than usual. Normally, it's in August. But I think part of the rotation away from financials, the longer-term rotation away from energy stocks that have performed so well, some of that demand is creeping into biotech now.

Kangas: Well, to that point, are there some specific stocks that you're keeping an eye on in the biotech sector?

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Depew: Yes, the easiest way to play it is I think with the iShares Nasdaq Biotech Index ETF, the symbol is IBB. I do own shares in that, by the way. I think that's the easiest way to play it. I'm not crazy about they're weighting in Amgen (AMGN), but there are some other components there that I do like.

Kangas: OK, how about another choice?

Depew: The other one in there that's in that ETF is Biomarin. The symbol is BMRN. I think that that's another way to play it. And the third way would be with Genzyme, symbol GENZ.

Kangas: Let's have a chart on that. And we see it's been getting strong recently.

Depew: That's right. There is some demand creeping in. They are ahead of the seasonal patterns, and I think that that usually is a nice run up until the fall.

Kangas: OK. Now you said you own the ETF. How about Biomarin and Genzyme? Are you personally an owner of those two stocks?

Depew: No, just through the ETF, Paul.

Kangas: So biotech is your favorite in this market.

Depew: Biotech, and for the retail investor at home, you just have to stay away from financials for now.

Here's the downlow on the IBB, click on the link to visit the source at ishares.com :

*Holdings are subject to change.

At this point Masters, looking to get into a sector early is a great play, so add the IBB to your watch list.