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, well 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
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
cant 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.
in mind of Aesops 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 tortoises 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.