Biotechnology companies take longer to come around. There’s a lot of red tape for these types of companies, and that’s why when you look at a company’s balance sheet you can wonder why certain companies are technically worth so much when all they appear to be doing is burning cash, Q after Q.
The simple answer to this, well actually there is no true simple reason, but the main reason behind this in our opinion, is because it can take years, sometimes decades for Biotech companies to get through the different levels of government approval, which is technically a good thing because we all want to be using safe, proven effective devices and pharmaceutical grade drugs and not be in some sort of experimental phase that can actually hinder improvement for people.
That being said, when many people trade these types of stocks, they are trading on the ‘potential’ of that company, and who they are in ‘bed’ with.
Is the company actively working with pharma giants?
Who’s backing their research?
The list can go on and on, so we try and simplify it by looking at companies we feel have a good buy-out potential, or some serious backing potential.
If you’re interested in hearing about the companies we are currently looking at, simply enter your email in the box provided below and we will let you know when we have some of our reports ready to view.
Editors
USA News Group“
Subscribe to receive our free
Market Review Weekly
Nothing in this publication should be considered as personalized financial advice. We are not licensed under securities laws to address your particular financial situation. No communication by our employees to you should be deemed as personalized financial advice. Please consult a licensed financial advisor before making any investment decision. We hold no investment licenses and are thus neither licensed nor qualified to provide investment advice. The content in this report or email is not provided to any individual with a view toward their individual circumstances. USA News Group is a wholly-owned subsidiary of Market IQ Media Group, Inc. (“MIQ”). Individuals are strongly encouraged to not use this publication as the basis for any investment decision.
While all information is believed to be reliable, it is not guaranteed by us to be accurate. Individuals should assume that all information contained in any of our reports is not trustworthy unless verified by their own independent research. Also, because events and circumstances frequently do not occur as expected, there will likely be differences between the any predictions and actual results. Always consult a licensed investment professional before making any investment decision. Be extremely careful, investing in securities carries a high degree of risk; you may likely lose some or all of the investment.
