Yes it is divot.....that's why I try to stick to my "rules", and keep a small basket of bio stocks...if you hit one, the basket is fine, very profitable.
My current bio portfolio (basket) consists of:
YMI - bought 5/2009, currently up 298.89%, already took my original investment off the table so riding free here...current price 1.797, target 6-8. If CYT 397 or CYT 997 hit, all bets are off, I see this one at $20 plus.
KERX - bought 9/2009, currently up 112.05%, already took my original investment off the table so riding free here also...current price 2.82, target 12-20. Two major drugs in pipe, Perifizone and Zerenex.
CHRI - bought 12/2009, currently up 400.00%, already took my original investment off the table so riding free here also...current price .048, target .25. (Note this stock is in TCM Tradional Chinese Medicine)
ADXS - bought 5/2010, currently down 4.8%, continue to accumulate...current price .149, target not set yet. (Live Lysteria vaccines, very cutting egde)
TPIV - bought 4/2011, currently down 18.57%, continue to accumulate...current price .19, target not set yet. (Also deals in drug delivery)
NVLX - bought 5/2011, currently down 5.58%, continue to accumulate...current price .055, target not set yet. (Wild Card based on purchased pipeline from SG Austria-Live Cell Encapsulation)
VRSEF - bought 11/2011, currently down 5.21%, will continue to accumulate...current price .805, target not set yet. I'm personally excited about Verisante, as I lost my father to lung cancer brought on by Melanoma, so skin cancer is a big deal to me....I love their technology!
This isn't meant to imply you should buy these stocks, but I just wanted to demonstrate how I handle this basket....
buy between Phase I and II positive trials when possible (as with VRSEF, not the case)
look for FDA Fast Track Status
Look for Orphan Stock designation
Look for share structure and cash on hand measured against 1 year cash burn....
purchase small position, and continue to accumulate until big breakout.....
sell out enough shares to take investment dollars off the table...
use proceeds to begin building next stock position...
Sell out remaining position when blockbuster deal or trial approval happens......1st quarter of 2012 for YMI and KERX I hope (not all of it of course)....lol!!!!
Harleyman
