Bio-Tech Stocks You Don’t Wanna Miss - Part I
Current YTD Retuen: -$1623
Biotechnology stocks are typically intimidated by investors due to its nature of vulnerability around the drugs the companies produce. With the exception of well known behemoth companies like Amgen (AMGN) and Genentech (DNA) , many biotech companies can plummet in value if one of their main drugs fail to go through. Having worked for a pharmaceutical company before (McNeil - one of Johnson and Johnson’s companies), I know how tough it can be to get a drug approved by FDA, not to mention the risk of side effects harming the company’s reputation (e.g. Merck (MRK) and its drug Vioxx back in 2004).
Now, this also means that investors have a great opportunity to make money if you choose the right ones. One drug that successfully go through FDA could mean HUGE gains for the investors. I recently read a book called 7 Commandments of Stock Investing by Gene Marcial. In his book, he talks about the following biotech companies and its potential attraction:
*Cleveland BioLabs (CBLI) - Produced two drugs aiming for prostate and renal cancer treatments and treatment of radiation exposure. One of their drugs is going through phase III clinical trials right now, which means that once the trials are successful, they’ll be going through an FDA approval. If the FDA approves the drug and its efficacy/safety, you bet their stocks will go up.
The shares once traded at $13.68 per share plunged to $3.31 a share when the Department of Defense awarded the contract to its competitor. However, be assured that they’re still working toward winning back their contract. Within the next two years, CBLI should have an update on the outcome of its phase III clinical trials.
Similar to most other markets, the biotech stocks are taking a beating due to oil crisis, inflation, weak dollar, and the subprime issue. I think this is another investment opportunity we should all be looking into for the next few years. You know I am.
Part II coming soon! Forgive me, with the July 4th weekend quickly approaching, I got sh*t to do. 
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Another rough day at Wall Street today. Pretty much lost all of the gains I observed yesterday. Man was I wrong again about Dryships (DRYS). Thought the stock would recover a bit, but it went down by $6.40 today. The market is near 11000 now thanks to General Motor’s (GM) downgrade, record oil price at $144, and the worrisome investors ahead of June’s employment report and European interest rate decision.
Man though my stocks are going down in value, I’m LOVING this decline! I still think this is a great time for us to invest in the stock market before the market starts to turn around in the next year or two.
Sold TGC at $3.22 per share. Made about $300 on this stock.
