3 Keys to Choosing Biotech Stocks
3 Keys to Choosing Biotech Stocks
As you may have read in a previous Money Revealed issue, I had the amazing opportunity of speaking with investment guru Ray Blanco.
Ray is one of those remarkable people that can take a horrible situation and turn it into something beautiful.
As a young man he dealt with Hodgkin lymphoma. He had treatments that wouldn’t be available without the groundbreaking work being done by biotech companies every day…
He thoughtfully stated, “As a cancer survivor, I was always interested in emerging biotechnology discoveries. I mean, if not for discoveries of the past, I would not be here today.”
And that was just the beginning of the journey Ray is on today — the journey to helping others reach their financial goals through diligent research. And personally, I like to make sure that a company’s activities are aligned with my values. It is no secret that I am pretty critical of some companies in Big Pharma. Having said that, there are certainly companies in biotech that I find very exciting.
Ray sends his research to hundreds of thousands of readers every day. Over the years he has helped readers like you pull gains of 68%… 104%… and even 207% out of the biotech market.
Ray broke down three major keys to investing in biotech for me, and I’d like to share what I learned with you today.
Let’s get started…
#1. Ready to Launch
Ray said that companies that have products at the end of research and development (R&D) or are on the brink of finishing the Food and Drug Administration (FDA) approval process should be considered for investing. You should also look at companies that have announced products that are set to hit the shelves in the near future…
Although this does not guarantee success, in his years of experience he has noted there is a higher likelihood that you will see gains on your investment since the majority of the testing stages are over.
Looking out for products that are being tested on human subjects rather than animals is another good idea. This is because animal models aren’t always a reliable indicator of safety and efficacy.
#2. Proper Management
Before Ray recommends a company to his readers, he makes sure to do his due diligence and ensure they are a well-run company.
You want the company to be run by people who have a wealth of knowledge in their fields, are entrepreneurs with business backgrounds and are managers with previous experience in scientific research.
Looking for companies with management with Ph.D.s or MDs is also highly recommended. These individuals will truly be able to understand the technical side of things.
With that knowledge they will be able to successfully make decisions about which products are the best to continue putting the company’s research, money and efforts toward.
Bottom line: Ray says investing in a well-run company will give you a higher chance of making a return on your investment.
#3. The Less Debt, the Better
Lastly, Ray said it’s important to look for companies with enough funding to support the future endeavors they plan on undertaking.
You don’t want to invest in a company that will be spending all of its funding paying off debts.
Pay attention to companies that haven’t had to take out disproportionate loans to get started.
Keep an eye on your inbox….
More on lessons learned and ways to profit coming to you soon!
Dr. Patrick Gentempo