A. Some of these stocks are trading at seven to eight times earnings.

Morgan, whose stock had done less well until recently, is trading at 16 times earnings.

Dow Chemical, the best of the lot, is trading at 12.7 times earnings.

A lot of the companies we own are trading at eight times earnings, and there is a limit below which they can't go.

Q. But right now the stock is trading at more than 40 times earnings.

The stock is now trading at $47.25, or 25 times expected earnings.

But given the risks, should they really trade at 25 times earnings?

More traditional drug makers are trading at just 27 times earnings.

If the stock continues to trade at about 18 times earnings, it should reach $27 a share by the end of next year, he estimates.

Even with the decline, the stock is trading at 267 times expected earnings.