Replies to post #13606 on *** ALL THINGS MONEY >>>> ATM ***

[auroradude]

For me, it is only because I feel like an idiot when I try to make sense out of their reports - I have no clue or aptitude for that stuff. And there are many doc's who are also good investors so I feel "outgunned" in that arena.

Like I've said before - very important to know your "competition" in whatever mrkt you are trading in - and lots who trade pharma/biomed just have too much advantage over me.....
"know thyself and your competition"....

Makes sense? Did I explain it ok?

[Breakout]

Bio, I try to answer some of your questions about bio-meds stocks. I been playing Sheffs picks for two years now and I think Auro hit some very important points in his post, but here are some others.

Understanding Bio-meds process that allows them to sell their products on the open market may help and I will do my best to decribe this in a big picture way. These companies usually have to develop a drug/equipment to solve a predifine problem and then they must go through the usually three to four stages of drug trails and they need good results before they can go to the next stage. You find many of this in penny land. At each level of approval the company stock gets a little more valuable because they are closer to having a product that can make million and even billions. Also for many their is a huge company that is waiting to buy them out or give them huge royality for the rights to the drugs/equipment. A failure at any level can mean instant death because many of these companies do not have the funding to start over.

So there are basically three ways to play them and the first is finding a biomed that has state of the art med/equipment, do a bunch of dd (which most of us dont understand) and sit on it until it goes through all the approval process and is allow to produce/sell their product by the FDA. This process can take years to get through.

The second way is buying into these stock right before each approval stage becuase like pennies they get huge bounce to the next price level. Sheff specializes in FDA final approvals. The risk vs. reward can be very high like a penny stock. If you know how to read the tea leaves like Pumppy then 50%, 100% and more is possible. If you suck at it, then it can eat your 50%, 100% or more in seconds.

Finally you could buy into one of these after approval based of of future earnings and how fast they can get their product to market.

Finally a little bit about Sheff. He is a guy who reads all the informtion from each study and then shares it with everyone on his site for free. He only recommends the best of the best as pump says he was 11 for 12 last year. He post all his buys in his top info pages and tells you what he likes and doesnt and the chances it will get approved.