| Small time share investors - Biotech? 22:32 - May 25 with 1203 views | Lblock |
I'm watching a couple of Stocks (one UK and one USA)
I'm interested in the stem cell side of things and just wondering if any other part time (or big hitters) using this font of knowledge forum are into any Biotech placements?
Not expecting an avalance of replies apart from some witty ripostes |  |
| Cherish and enjoy life.... this ain't no dress rehearsal |
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| Small time share investors - Biotech? on 12:45 - May 26 with 1070 views | R_from_afar |
I don't dabble in shares because I don't have the knowledge or the patience so I can't help you really. One company I did once consider investing in was Molycorp, a US player in the rare earths market. They now seem to have gone bust - I must've cursed them - but that market is interesting because it is dominated by China. Rare earths are used in all sorts of in-demand "green" technology.
RFA |  |
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| Small time share investors - Biotech? on 13:04 - May 26 with 1047 views | MrSheen |
| Small time share investors - Biotech? on 12:45 - May 26 by R_from_afar |
I don't dabble in shares because I don't have the knowledge or the patience so I can't help you really. One company I did once consider investing in was Molycorp, a US player in the rare earths market. They now seem to have gone bust - I must've cursed them - but that market is interesting because it is dominated by China. Rare earths are used in all sorts of in-demand "green" technology.
RFA |
Rare earths aren't actually that rare, but they are dirty and expensive to refine. The Chinese killed off the world's other suppliers in the 90s due to low costs and lax environmental standards and established a monopoly. When the smartphone boom hit around 2010 there was a scramble for limited supplies to use in screens and magnets. The Chinese put quotas in place, in part to disadvantage Japanese manufacturers and the prices exploded. Loads of mining projects old and new were reactivated, but during the 7-8 years it took to get them into production, industrial users designed the most expensive elements out of their products and demand slumped as supply trickled out. |  | | |
| Small time share investors - Biotech? on 15:29 - May 26 with 967 views | BostonR |
It is a tricky market. The problem with some of the Biotechs, be they start-ups or part developed is that they need a lot of cash to keep going. Without doubt some of these companies have some of the brightest minds at work, but it requires a lot of investment. Johnson & Johnson are know for their support of the innovation market and I note their share price has been driven up by their success in investing and supporting these smaller companies. Over the past two years their share price has risen from roughtly $80 to $112 and they are now seen as the leader in this investment and not such a bad return. |  | | |
| Small time share investors - Biotech? on 17:51 - May 26 with 893 views | danehoop |
| Small time share investors - Biotech? on 15:29 - May 26 by BostonR |
It is a tricky market. The problem with some of the Biotechs, be they start-ups or part developed is that they need a lot of cash to keep going. Without doubt some of these companies have some of the brightest minds at work, but it requires a lot of investment. Johnson & Johnson are know for their support of the innovation market and I note their share price has been driven up by their success in investing and supporting these smaller companies. Over the past two years their share price has risen from roughtly $80 to $112 and they are now seen as the leader in this investment and not such a bad return. |
Given the volatility in the market and the limited chance of finding the next big thing as a private investor you are probably looking at needle in a haystack material to pick the "right" hot stock. Even super star investment guru Neil Woodford has made mistakes in this area - his Patient Capital investment trust lost about 5% of value alone through what appears to be insufficient due dilligence on a biotech stock.
If you are going to invest in the area then I would probably advise using an collective investment vehicle to do this allowing professional managers and researchers to do the work. I would suggest that an investment trust is probably better than a unit trust as they dont have to sell shares in the event of people cashing out. Two that have a good reputation and good management are International Biotechnology Trust (IBT) or The Biotech Growth Trust (BIOG) to gain exposure. Both trusts have had a hard time over the past year as biotech stocks have come off their highs after about 3 or 4 years of exceptionally high growth. Its probably a good time to drip feed some money into the sector.
The caveats in this are that you need to be able to hold on for 3-5 years to give yourself a chance of doing well and, given the likely volatility, you have to be happy with the risks that you are taking. Ask yourself the question, what would I do if the share priced dropped by 30% in the first year? If your instinct is to withdraw your funds then your probably best off avoiding the sector. |  |
| Never knowingly understood |
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| Small time share investors - Biotech? on 19:28 - May 26 with 840 views | Lblock |
Cheers Dane -- sage advice | |
| Cherish and enjoy life.... this ain't no dress rehearsal |
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