Before sifting through the investment universe for the most appropriate tool for the job, investors should be able to answer one central question: What is my investment thesis? For long-term core positions, there’s a good chance that investors can get the exposure they seek through exchange-traded funds. However, when thinking about shorter-term tactical bets (or satellite positions), the line gets blurred. Usually, the decision boils down to which ETF is the best tool for the job. At other times, the right tool might not be an ETF at all but, rather, a stock. Regardless, the key is to match the thesis with the investment vehicle that most closely correlates with your conclusion.

For example, you might think that biotechnology stocks have been unfairly beaten down with the rest of the market but still possess very promising prospects. Furthermore, you may

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Acadia Pharmaceuticals, Inc.

(Public, NASDAQ:ACAD)

A San Diego drug maker is hoping an infusion of research capital will allow it to continue its work in searching for Parkinson’s disease treatments.

Acadia Pharmaceuticals (NASDAQ:ACAD)‎, which hopes its drug, pimavanserin, will treat Parkinson’s-related psychosis, recently received $30 million from Canadian pharmaceuticals company Biovail Corp. (NYSE: BVF) in a deal that could see additional investment should the drug succeed during current trials. The pact covers the co-development and commercialization of pimavanserin, which is in a Phase III trial.

Acadia is utilizing innovative technology to fuel drug discovery and clinical development of novel treatments for central nervous system disorders.  It’s an intriguing trade opportunity because many analysts believe the stock continues to trade below cash value.

ACAD closed on Wednesday at $1.76 up 0.06 (3.53%) and has had a 52wk Range between $0.72 - $8.84 per

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We are moving our rating on Amgen, Inc. (AMGN) from Hold to Sell.We struggle to understand how the top-line might accelerate to a pace over the next three quarters that would allow management to deliver revenues within the current range of $14.4 to $14.8 billion. This would mean a significant pick-up in trends considering the first quarter delivered revenues of only $3.3 billion.We would not be surprised to see the top-line guidance revised down again after the second quarter. We are comfortable with our below-guidance estimate of $14.275 billion forecast.Based on our 2009 through 2013 model, Amgen's 5-year earnings CAGR [compound annual growth rate] is 5%. This is far below the biotechnology peer-group average of around 15% (13% for Gilead, 8% for Biogen, 17% for Celgene, 12% for Roche, 16% for Genzyme). In fact, Amgen's 5% earnings CAGR is even below several ...

Sometime during the middle of the year, Genentech (DNA) shareholders are going to get $95 in cash for each share of Genentech stock they own. In total, nearly $47 billion in funds are expected to be returned to biotechnology investors.We've come up with an effective "basket approach" to re-deploy those funds back into the biotech sector -- in search of the next Genentech.Antisense Makes a Lot of SenseFor a little over $13, investors can pick up one share of Isis Pharmaceuticals (ISIS). Isis is the market leader in antisense technology.We've made it no secret in the past -- we are big fans of antisense. We view the drug discovery engine fueled by Isis' antisense technology very similar to the power of Genentech's recombinant DNA and monoclonal antibody technology breakthroughs of the 1980's. Antisense drugs are still in their infancy, ...

Highlighted companies include Genentech, inc. (DNA), Amgen, Inc. (AMGN) and Wyeth (WYE).Waxman's Bill Bad for Biotech Companies (and Doctors, Patients and America)California Representative Henry Waxman (D-CA), Chairman of the House Energy and Commerce Committee, has proposed legislation, along with his colleagues, that would give the U.S. Food and Drug Administration (FDA) the authority to approve generic (bioequivalent) versions of biotech drugs. As of now, there exists no path to approval for so called follow-on biologics as there is with small-molecule pharmaceutical products.According to the Wall Street Journal, the main contention on the bill remains how many years of market exclusivity a product would receive after approval. Mr. Waxman is calling for 5 years, whereas the biotech companies and trade organizations are asking for 14 years.This is a serious issue for investors in biotechnology stocks, in our view. Allowing ...

Highlighted stocks include Arena Pharmaceuticals (ARNA), CV Therapeutics (CVTX), Osiris Therapeutics (OSIR) and AMAG Pharmaceuticals (AMAG). Know Your Options When Investing in Biotechnology Stocks Investing in biotechnology stocks is certainly not for the timid or weak at heart. Stocks in the industry trade with perhaps the highest volatility in the market and move based on binary events. The ultimate of binary events for a biotech stock is the release of important phase III data or a decision by the FDA. Knowing that after you purchase a biotech stock you may either be very right or very wrong at some point thereafter, perhaps no sector lends itself to the usefulness of options better than biotech. We have 2 strategies that may be helpful to clients. The first is on stocks we rate Hold but have big binary events coming in the next

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