Opinion: 6 reasons biotech stocks may soon tank

By Michael Brush

Beware of biotech stocks.

The iShares Nasdaq Biotechnology ETF IBB, +0.40% has soared about 60% from lows during a bout of weakness last April, compared with an increase of 16% for the broader market. And this year has started off well, with a gain of 10%…….

I’m not the only one who is skeptical of the latest monster move in biotech. “At current levels, we believe another pullback is due,” biotechnology expert John McCamant wrote in the most recent edition of his Medical Technology Stock Letter. “We remind investors that last January-February [of 2014] were also super strong — only to witness stocks getting crushed in March.”

What could tank biotech? To root out probable causes for a correction, I recently consulted McCamant and a few other sector experts. Here’s the short list, and five stocks to consider buying in any pullback.