Investment in small biotechs belongs in the specul
Post# of 154331
(Total Views: 629)
Posted On: 10/07/2021 7:36:16 AM
Investment in small biotechs belongs in the speculative portion of a portfolio. It is a very difficult way to make money-big risk, big reward. As optimists we emphasize the big reward part, but forget the big risk part. Unfortunately, by their very disruptive goals, small biotechs acquire powerful enemies; big pharma, gov't officials with ties to big pharma, and competitors of all sizes. What's the little guy supposed to do?
There has to be sincere confidence in management. There will be ups and downs. After all, if the CEO was perfect, he/she would be CEO of a big company, not a small biotech. Once confidence is lost, get out.
Specifically, I think most of us appreciate that NP is a bulldog. By luck or by design he saw something in LL that others did not see, and he is determined to realize its potential. He is trying hard to improve his weaknesses. IMO, he is a sincere and honorable man. I like him. That being said, I would prefer someone else to be the face of the company.
Understand and believe in the science. This is one of the most valuable functions of the message board in addition to the company website.
Don't shy away from reading opinions opposite of our own.
Recognize the difference between legitimate skepticism and efforts to short or bash the company.
Be patient. (Years, not days, weeks, or months.)
Trade around a core position. Take some profit, especially when there is no news. Buy when the price goes down on no news.
When the information changes, our position must change.
Stay humble. If we're wrong, take the loss.
Don't invest more than you can afford to lose.
Finally, some small biotechs throw their drug(s) at any new application that comes across the news in hopes that one of them will stick. They lose focus on their original goals and resources are wasted. IMO, COVID fell into Cytodyn's lap. The company took a scientific leap, but the potential reward is greater than the risk. So far, mgmt. has done a decent job in spreading its resources. The diversification was by design, not desperation. Now we wait some more.
There has to be sincere confidence in management. There will be ups and downs. After all, if the CEO was perfect, he/she would be CEO of a big company, not a small biotech. Once confidence is lost, get out.
Specifically, I think most of us appreciate that NP is a bulldog. By luck or by design he saw something in LL that others did not see, and he is determined to realize its potential. He is trying hard to improve his weaknesses. IMO, he is a sincere and honorable man. I like him. That being said, I would prefer someone else to be the face of the company.
Understand and believe in the science. This is one of the most valuable functions of the message board in addition to the company website.
Don't shy away from reading opinions opposite of our own.
Recognize the difference between legitimate skepticism and efforts to short or bash the company.
Be patient. (Years, not days, weeks, or months.)
Trade around a core position. Take some profit, especially when there is no news. Buy when the price goes down on no news.
When the information changes, our position must change.
Stay humble. If we're wrong, take the loss.
Don't invest more than you can afford to lose.
Finally, some small biotechs throw their drug(s) at any new application that comes across the news in hopes that one of them will stick. They lose focus on their original goals and resources are wasted. IMO, COVID fell into Cytodyn's lap. The company took a scientific leap, but the potential reward is greater than the risk. So far, mgmt. has done a decent job in spreading its resources. The diversification was by design, not desperation. Now we wait some more.
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