I've stated before I've seen it happen over and over. Biotech is VERY expensive, you burn through cash so fast. Some make it, and make it big. If you got in illumina early you did very well. I've seen plenty speculative cancer drug companies have the same scenario you described. Plus for every one you see on the markets, there are 10 private companies that simply go under, run out of funding, results not good enough to go forward, etc. I just generally shy away from investing in the sector. The couple I will get are already on NASDAQ. I got in illumina (ILMN) when it crashed down to <$30 in Oct 2011 knowing its fundamentals were strong and NGS is such a growing sector. (Unfortunately I also sold out too early $70 before it really took off, to $190 now. doh! heh. They other currently fairly cheap one for NGS testing is Invitae: NVTA currently 9.69. I can trade the ups and downs of this stock between a $8 and $10 range. Though outlook long term is pretty good. If goes below $9 again I will certainly pick up more shares.
I have 3 investing accounts: 1 for more growth and dividend stocks plus a few techs: NVDA. AAPL, COST, TSLA, WM, SBUX, AMGN, MU, IRBT,etc, etc and things like NVTA. 1 is all REITs, I love REITS! Especially monthly dividends: ARR, GOOD, AWF, etc and then my frighteningly variable OTC account. Which used to have a good 12-15 stocks at any given time, but now its 85-90% AMFE and 3-4 small positions for 'fun, lets see if we can catch a swing' trade.
I personally conserve overall risk by ensuring I don't have too much extra money to spend. I know me, I HATE money sitting idle. Wife controls 'hoarding cash' heh, I can't do that, its got to go somewhere. So I do things like: Max 401k, I put my Mortgage on a 10 year loan, etc to restrict my free cash so whatever I do invest in the OTC or 'risky' plays I can afford to lose 100% of it and not jeopardize myself. That said, I did break the rules a bit for AMFE, as I sold a few funds in my IRA that were only doing 1-3% a year to buy more. But only after I was extremely confident. So far so good ;) and my confidence has not waned one iota and I have not stopped buying. Current consolidation is nothing but noise for a moment in time. We are talking what, 7 weeks until mid October? Folks be chattering like the audit won't be done until 2020. Investing time perception is incredibly skewed in OTC land.
Cheers,
-PM
AI
