Wong's BioTech Stock Report
The investment report that gives the essentials to wisely invest in biotechnology stocks.
Wong's BioTech Stock Report focuses on biotech companies with growth potential. Through our understanding of the industry, analyze of the competitive forces, the technology on hand and market demand; by putting all the information together, we point out who will be the leader. We want to answer the key question in regards to biotechnology, "Does the science and technology work and at the same time will the developing drug be able to meet medical needs, and can these biotech companies receive FDA regulatory approval and handle the competitive business environment"? If these biotech companies met these criteria, we’ll catch emerging companies that will be successful in getting products to the market.
Our mission is to generate moneymaking ideas for individual/institutional investors, doctors, pharmacists, stockbrokers, healthcare executives and investment clubs in the biotechnology sector. But at the same time, to be the most successful, investors must invest their money to tolerate the volatile market and to have the tenacity for the long-term. At the same time we do have one comment.
Always look for opportunities....
Stocks in the biomedical technology area have a number of unique advantages and will be driven by a variety of factors. For example, the combination of technological and scientific advances, the demographic changes in our society; will cause an increase in demand for better medical care, making this industry extremely attractive over the next decade.
But the one perceived disadvantage of growth stocks is their high volatility. While volatility is often associated with risk, it is also a source of opportunity. Even those companies with the financial resources and product diversity that have the ability to reduce the long-term risk, still have short-term price fluctuations. We believe these dips provide outstanding opportunities for those investors "to establish positions" or "add to positions" when the stocks are down. Most investors are aware of these short-term risks when the stocks have dropped in price and these tend to be the better growth stocks because often they have the lowest risk at the time they are considered to be the riskiest.
Then there are the inefficient markets, a result when investors do not have the same information. This is in part due to the unique problems inherent in properly valuing development-stage companies. Most of them are losing money, and the value is in products that are not yet approved for sale. The visibility is increased and the risk is reduced as these products progress through the regulatory cycle. Opportunities are created because the investment community often ignores this progress as it happens. Investors get excited when a prominent medical publication publishes results, or the product passes a major regulatory hurdle. However, the real value changes as clinical trials prove that the drug actually works. But investing in these stocks is further complicated by the speed with which events get discounted. Scientific discovery takes long periods of trial and error. Every day science is discovering new rules for biotechnology. Sometimes medical researchers explore down a dead end; other times uncover a new mystery. This is the nature of scientific discovery; it can’t be rushed.
The biotechnology sector is an exciting, yet complex and risky investment arena. Assessing the scientific basis of a new technology requires specialized knowledge. Evaluating the soundness of a drug's clinical trial results demands a strong understanding of trial design and statistical analysis. Not everyone has that skill, but we do. We strive to provide our subscribers with investment opportunities: we issue "buy" recommendations on companies we believe to be undervalued "sell" recommendations on stocks we deem overvalued and "hold" recommendations when the stocks are fully valued.
Keep in mind of Aesop’s fable about the tortoise and the hare; the tortoise prevailed because he took a slow and sure approach to running the race. Thus, those in the biotechnology industry take the tortoise’s approach to win the race. To invest in biotech companies means that investing in these companies at times requires a great deal of patience and a long-term outlook. Through your patience, perseverance and combined with an investment strategy that fits your needs and desires, investing in medical technology should be very profitable for many years to come.
- Wong's BioTech Stock Report
- © 2008 All rights reserved
Investment Philosophy l Sample Issue l Back Issues l Subscribe l Contact Us l About Us l Investor Resources
nnnnnnnnnnnnnn