Why do retail investors put money very, very early into biotech stocks? I have come to the conclusion, the painful conclusion, that we are mainly just too stupid and impatient not to wait until a company is far enough along in the trial progress and have their financial house in order to at least have a chance for success.
How many of you have asked the same questions I have of myself; 1 - why haven't any financial institutions jumped in yet and 2 - how can someone who is starting their position today end up with a lower cost basis than me who has been involved with the stock for years?
My horse racing analogy is that retail investors feel they have to bet on a horse while it is still a foal or a 2 year old, while financial investors realize they don't have to place their bet until their horse is in the final stretch to win the Triple Crown.
Why place a bet early when you know 95%+ of all drugs going thru trials usually go down the tubes and almost as many young biotechs go belly up because they don't have access to sufficient capital and fall victim to disastrous financing or the games of criminal and near criminal shorting activity?
I have a firm belief that all of us here are not that smart, we just were blessed (and I am not using that term lightly) to have placed our early bets on a Secretariat of biotechs. Now that we are at a point where we realize our drugs have a fantastic chance of all 3 products becoming commercial, and commercial in areas of extremely high revenue streams, how many look back and realize how close we came to total failure if we had hit a major roadblock either in the science, financing, deceptive mgt, or whatever other ills all startups are subject to. Last but not least, who really knew Dr Menon and Leo were such stand up guys for the retail investor and the patients their products will be able to help as opposed to money grubbing SOB's that seem to dominate top mgt in a heavy percentage of companies today?
We had a con man expert on board ship who gave a tremendous show and he explained it well in that pickpockets and other con men fleece those that are the easiest to fleece and with the deepest pockets for their efforts. We retail investors in biotech are among the easiest patsies in the realm of retail investing because the path is so long and hard for a company/product to be successful.
How many of you have asked the same questions I have of myself; 1 - why haven't any financial institutions jumped in yet and 2 - how can someone who is starting their position today end up with a lower cost basis than me who has been involved with the stock for years?
My horse racing analogy is that retail investors feel they have to bet on a horse while it is still a foal or a 2 year old, while financial investors realize they don't have to place their bet until their horse is in the final stretch to win the Triple Crown.
Why place a bet early when you know 95%+ of all drugs going thru trials usually go down the tubes and almost as many young biotechs go belly up because they don't have access to sufficient capital and fall victim to disastrous financing or the games of criminal and near criminal shorting activity?
I have a firm belief that all of us here are not that smart, we just were blessed (and I am not using that term lightly) to have placed our early bets on a Secretariat of biotechs. Now that we are at a point where we realize our drugs have a fantastic chance of all 3 products becoming commercial, and commercial in areas of extremely high revenue streams, how many look back and realize how close we came to total failure if we had hit a major roadblock either in the science, financing, deceptive mgt, or whatever other ills all startups are subject to. Last but not least, who really knew Dr Menon and Leo were such stand up guys for the retail investor and the patients their products will be able to help as opposed to money grubbing SOB's that seem to dominate top mgt in a heavy percentage of companies today?
We had a con man expert on board ship who gave a tremendous show and he explained it well in that pickpockets and other con men fleece those that are the easiest to fleece and with the deepest pockets for their efforts. We retail investors in biotech are among the easiest patsies in the realm of retail investing because the path is so long and hard for a company/product to be successful.
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