HMO woes not biotech's gain

Although HMOs are looking less attractive as investments these days, don't expect the money divested from that health care sector to find its way into biotech. Instead, most of the money will find its way into other earnings-driven plays in health care.

In October, Oxford Health Plans announced a computer system snafu would lead to lower than expected earnings, and its woes have been followed up with a spate of disappointments in the managed care sector. But "when Oxford broke, people went into pharma stocks," noted Kurt von Emster, portfolio manager at Franklin Funds. "That was the safe, liquid place to put their money."...