"Small, biotechnology and drug companies offer high risk/high reward opportunities." I am reading this blog and cannot decide which is better? http://seekingalpha.com/article/316888-viropharma-is-poised-for-gain
Mr. HomelyWizzard, Nearly every single biotech company I've ever heard anyone invest in has usually one of three problems: 1) The drug is at a various stage of development prior to earning revenues. 2) The drug has early failed trials, wins approval, and flops revenues coming in way below expectations and only had 1 drug to complete its IPO. 3) The drug never gets approved in a reasonable time. What's the best way to get by these problems? Don't invest until they are actually making money. There can be no reward without earnings, and no matter how much I emphasize to never invest in anything losing money, I don't see why small investors are attracted to these types of stocks because if they aren't making money they probably never will until they do. When that happens, then you may invest in them. As far as this goes I don't even have to read HALO's or VPHM's financials to know that they aren't making money. It is true, it's high risk, but it's not at all high reward until there's actually revenues and earnings and both must be above expectations anyway to see any appreciation. Don't invest in those until there are revenues, or you have an expert advise you literally with inside information about whether or not anything in the pipe is safe. Either that, or just don't ever buy something that has no positive earnings.
Thanks bwolinsky for the informative response....I just contributed to my roth IRA at vanguard and willing to gamble a little in stock picking ) I guess I will be lookin elsewhere)...I did not even bother with charting - that's next....