Early last year, I saw a research study that said nearly 60% of all U.S. workers have a net worth of less than $25,000.
And that means they have no retirement.
From the moment that I saw that research, I knew I had a mission – to help folks reclaim their financial futures by breaking free of Wall Street's self-serving shackles… and creating wealth all on their own.
And I knew there was one avenue to travel – the high-tech highway.
So I developed a roadmap – a set of five rules – that would serve as a kind of "tech-investing GPS." My goal was to help investors identify "double-your-money" tech stocks – and navigate their way to massive high-tech wealth.
Today I'm going to walk you through those rules again, and also give you a bonus – a biotech stock with double-your-money potential.
So let's get started …
The Best of the Best Market
As all of you know, the best proxy for the broad tech market is probably the Nasdaq Composite Index. And the Nasdaq has been hot – red hot, in fact. On Monday of last week, this tech-laden index hit a 14-year high. And I believe there's more to come.
But there's a portion of the tech sector that's even hotter, still.
I'm talking about the biotech sector.
Over the last couple of weeks, a wide range of biotech shares have had strong runs. And I believe this sector will continue to outrun the market for the rest of the year.
And for a very simple reason: There's a major catalyst driving biotech and related drug company shares much higher.
Of course, I'm talking about mergers and acquisitions – or M&A in the parlance of Wall Street. Big Pharma and maturing biotech firms are using these mergers to acquire new products, broaden their sales channels, and supercharge profits.
Analysts at Bank of America Merrill Lynch (NYSE: BAC) see a strong biotech buyout market for 2014. That's going to be quite an accomplishment given that the $34 billion in deals the sector saw last year was larger than those in the previous two years combined.
Take the case of Irish drug maker Actavis PLC (NYSE: ACT). Just two weeks ago, it agreed to buy New York-based Forest Laboratories Inc. (NYSE: FRX) in a deal valued at $25 billion, sending shares of FRX up nearly 8% in just five trading days.
But this deal also underscores a very important trend for biotech investors: Both the target and the suitor often see their shares advance in price. In this case, Actavis gained 10% over the subsequent five days after the deal's announcement.
And we know of another company that's going to benefit from being a buyer.
We're Jazzed About This Biotech
For some time now, I've had my eye on Jazz Pharmaceuticals plc (Nasdaq: JAZZ), an Ireland-based mid-cap biotech that's been busy on the acquisitions circuit. It's buying promising drug compounds from peer companies. And it's buying rivals outright.
It's turned out to be an excellent strategy for Jazz.
About the Author
Michael A. Robinson is one of the top financial analysts working today. His book "Overdrawn: The Bailout of American Savings" was a prescient look at the anatomy of the nation's S&L crisis, long before the word "bailout" became part of our daily lexicon. He's a Pulitzer Prize-nominated writer and reporter, lauded by the Columbia Journalism Review for his aggressive style. His 30-year track record as a leading tech analyst has garnered him rave reviews, too. Today he is the editor of the monthly tech investing newsletter Nova-X Report as well as Radical Technology Profits, where he covers truly radical technologies – ones that have the power to sweep across the globe and change the very fabric of our lives – and profit opportunities they give rise to. He also explores "what's next" in the tech investing world at Strategic Tech Investor.