biotech stocks to watch
By Greg Madison, Associate Editor, Money Morning
One of the really beneficial things about science is its power to transcend borders and ideologies.
Scientists in countries that may be totally hostile to one another have the chance of collaborating on difficult problems in a spirit of openness.
This ability to collaborate and exchange information across borders is particularly important when a new disease with global pandemic potential emerges, as it has in the Middle East with the respiratory system coronavirus (MERS-CoV).
This "novel coronavirus" was identified in September of 2012 in the Saudi Red Sea port of Jeddah. The disease was found in a deceased 60-year old man who died of acute pneumonia and kidney failure. Little else is known of this unfortunate individual.
Double Your Money in No Time Flat
If you're looking to double your money, the biotech sector is one of the best hunting grounds that you'll find.
So far this year, for instance, the iShares NASDAQ Biotechnology Index (NASDAQ: IBB) - an ETF that's a great proxy for the sector - has zoomed 28.2%, more than double the 13.59% SPDR S&P 500 Index ETF (NYSEArca: SPY). The IBB gained 31% last year.
And a lot of individual biotech stocks have actually doubled, tripled or more - the Holy-Grail type of gains that high-tech investors crave.
But there's a problem.
You see, not all biotech stocks are created equal.
Why This Stock (and Sector) Will Trounce All Others
Forget gold, forget oil, and forget the S&P 500.
If you want to make big money in the market today you have to look to biotech.
In fact, if you ignore this field, you're going to miss some of the market's biggest stock gains.
That's because what happened earlier this week is going to become the norm.
On Monday, of the top 25 Nasdaq advancing stocks, 12 were straight-up biotech plays and another was a small-cap healthcare concern.
Their one-day gains ranged from 8% to 47%. Not bad for a day's trade.
Medical Miracle: Biotech Duo Is "Printing" New Organs
Imagine a future in which anyone needing a transplant could just create the needed tissue on their home printer.
That day hasn't arrived yet ... but it's getting closer all the time.
A partnership between a global software firm and an early-stage biotech player is already promising to transform the field of medical transplants.
And for many patients, that day can't get here soon enough.
Why the Pentagon Wants to Use This Penny Stock to Cure the Flu
A tiny clinical-stage biotech firm is pioneering a ground-breaking new way to fight the flu.
Their process is so radical it has caught the eye of DARPA , the shadowy research and development arm of the Pentagon.
What makes their process so unique is that the company uses tobacco plants instead of eggs to produce the recombinant proteins that are the key to vaccines.
Its goal is to dramatically cut the time it takes to manufacture vaccines, which can take as long as nine months to put into production.
In fact, in a key test of the firm's technology DARPA recently ordered 10 million doses of a vaccine candidate as part of a $21 million project.
By all accounts they came through with flying colors, delivering 10 million doses of the H1N1 influenza vaccine in just one month.
So who is this ground-breaking new vaccine company?
It's a tiny Canadian-based firm called Medicago Inc. (OTC:MDCGF; TSX:MDG).
5 Ways to Spot the Next Hot Biotech Stock
It's not enough to understand long- term trends, today's investors need to have the ability to move quickly, especially when it comes to biotech stocks.
But here is what you need to know about biotech stocks: none of them are created equal.
For all their potential, bio tech stocks remain among the most challenging for investors like you to identify, select and earn money on.
However, with a little bit of the right guidance you can narrow your list to the stocks with the highest likely upside.
In fact, I've developed a five- point checklist of what I look at when screening biotech stocks that I'd like to share with you.
It may not be a road map. The biotech sector just isn't that easy and "x" almost never marks the spot.
But it is a great place to start if you are serious about separating the pretenders from the contenders.
Five Steps for Successful Biotech Stock Investors
As you begin to break down a potential stock consider the following as it relates to your decision.
1) Choose your niche.Biotech is a big term and an even bigger sector. There are literally thousands of companies trying to make their move in everything from vaccines to nano-technology.
There's quite literally no way you can know everything, so stick to the parts of the sector you believe have the biggest potential.
For instance, I think some of the biggest innovations and profits will come from bio tech companies that link living systems with their digital counterparts.
So I tend to concentrate my biotech investments in companies that are exploring synthetic biology and computational bioinformatics.
To me it's a no brainer.
While there is no question that traditional bio tech will be big, over the next few years we will see the line blur very rapidly between what we need to live and how we actually live - aided by technology.
Admittedly, I have a rather selfish reason...
To continue reading, please click here...
Six Biotech Stocks Riding the Baby Boomer Wave
The size and scope of the Baby Boom generation has opened up an abundance of health care opportunities --especially ground-breaking and game-changing biotech stocks.
As this "gray wave" matures the need for better treatments for the myriad health problems that often accompany old age only grows stronger.
And while no one has discovered a cure for Alzheimer's, cancer, Parkinson's or other ailments that come along with old age, several biotech companies are racing to cure a long list of diseases and disorders.
The prospects are certainly daunting, but the possibilities in the biotech field are literally endless-for patients and investors alike.
With that in mind, here are six biotech companies that are working on radical and revolutionary drugs.
From A TO Z: Investing in Biotech StocksAlexion Pharmaceuticals (Nasdaq: ALXN) is a biotech company that engages in the innovation, development and commercialization of therapeutic products for treating patients with ultra-rare and severe disorders around the globe. The Connecticut-based business focuses on developing products for the treatment of diseases in hematology, nephrology, neurology, metabolic disorders, oncology and ophthalmology.
Unlike scores of other biotech companies, Alexion boasts a strong growth trend and has plenty of cash to fund its research and development.
Most recently, the cutting-edge company received FDA and European Commission approval on its marquee drug called Soliris. Developed for the treatment of a blood disorder called atypical hemolytic uremic syndrome (aHUS), Soliris sales have been growing at a 45% compounded annual growth rate.
Biogen Idec Inc. (Nasdaq: BIIB) works in the worldwide discovery, development, manufacturing and marketing of therapies for the treatment of neurodegenerative diseases, hemophilia and autoimmune disorders. Its key product is AVONEX for the treatment of relapsing multiple sclerosis (MS).
The company continues to advance and improve therapies for MS which afflicts roughly 400,000 in the U.S. and 2.5 million worldwide. Every week, 200 people are diagnosed with the neurological disease in America. Its MS drug Tysabri, marketed in conjunction with Irish pharmaceutical company Elan (NYSE: ELN) had sales of $1.5 billion in 2011.
To continue, reading please click here...
Investing in Biotech Stocks: Why the "ASCO Effect" Rally Could Start Tomorrow
Get ready to profit from the "ASCO Effect."
Each June, the American Society of Clinical Oncology (ASCO) hosts its annual meeting - an event that's attended by 30,000 people and the scene of 4,000 presentations.
And each May, just ahead of this crucial gathering, a select group of oncology stocks takes investors on a pretty wild ride - almost like clockwork.
That's the "ASCO Effect."
The catalyst for this big run-up - in which some stocks double, triple or quadruple in price (or more) - is well-known. A few weeks ahead of the meeting, ASCO posts drug-research abstracts of some of the presenting companies on its Website; investors look at the clinical-trial results contained in the abstracts, and key on the most-promising players - igniting share rallies so torrid that they're remembered for years.
This year's ASCO annual meeting is scheduled for June 1-5 in Chicago.
But, according to the latest reports we've seen, the abstracts are due out at 6 p.m. (EDT) today (Wednesday).
If that deadline is met, you can bet that investors will be scouring those abstracts all night.
If you want an example of the ASCO Effect in action, just look at what happened with OXiGENE Inc. (Nasdaq: OXGN) shares just 12 months ago. As May opened last year, OXiGENE was a relatively unremarkable biotech stock. Indeed, the company was juggling a lot of problems.
OXiGENE faced questions about its management turnover and its cash position. Shareholders were worried about its cancer-drug pipeline. And the stock was trading at less than $2 a share.
In fact, OXiGENE shares had been one of the biotech sector's worst performers in 2010, and the company had to endure the ignominy of a reverse stock split in February 2011.
Then came the ASCO Effect.
To continue reading, please click here...
Biotech Stock ETFs: How to Ride the Surge in Biotech Mergers & Acquisitions
Innovations in biotechnology are evolving at the speed of light.
In fact, astonishing advancements in biotech have transformed the way we practice medicine. Leading-edge biotech products and breakthroughs are literally saving thousands of lives every day.
Needless to say, biotech stocks can be strong medicine for investors, too.
For instance, the Nasdaq Biotechnology Index rose 457% from the end of August 1998 to the end of February 2000. Going back even further to the early 1990s, biotech stocks have soared by 1,347%.
Think about it... for biotech investors every $10,000 invested turned into nearly $140,000.
The good news for investors is that after slumping during the recession, biotech stocks are making a comeback. In the first quarter of 2012 alone, the Nasdaq Biotech Index gained 18.2%
And conditions are setting up for even better gains in the future.
Click here to continue reading...
Investing in Biotech Stocks: The Latest Buyout Candidate
The biotechnology buyout binge continued this week, driving profits for those investing in biotech stocks.
The sector's latest M&A news picks up a story that began in April, when Human Genome Sciences (Nasdaq: HGSI), the U.S. pioneer of gene-based drug discovery, rebuffed a $2.6 billion bid from Britain's GlaxoSmithKline (NYSE ADR: GSK).
Human Genome argued the unsolicited bid did not reflect the company's inherent value. GSK adamantly insisted its bid, an 81% premium when settled upon on April 18, is full and fair.
UK-based GSK is not taking the rejection sitting down...