How to pick good health care stocks. This is industry focus.

Hi Fools, health care analyst Michael Douglas and I'm here with one of our health care

contributors, Todd, how are you doing?

I'm doing well.

The wind was whipping 50 miles an hour last night,

but it didn't blow me away, so I'm here.

Well, we're very grateful you're here. We're very glad you're here. So we wanted to just kind of

chat a little bit about what makes a great health care stock because I think that

you know this is this is in a lot of ways kind of an impenetrable, I think, market for a lot of people.

And one of the benefits of that, of course, is that there are potential opportunities for mispricing.

We're folks who don't really understand what's going on

are overreacting or underreacting to news

and that does give you know risk tolerant and savvy investors

sort of opportunities to invest in great companies.

Sometimes that valuations that might seem stretched by, let's say, the S&P's standards, but less

so when you think NASDAQ, tech, health care.

So let's talk a little bit about that, Todd.

What do you think is the first thing that people should be looking for in a health care stock,

let's say a biotech stock.

Sure you know there are basic things ways that I approach any stock and it doesn't

really necessarily have to be biotech or a big pharma. You can even be a retail stock. But in the health care

space, what I like to see is first, top line, product. What are the products that the company already has on the market?

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