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 a 36-year Silicon Valley veteran and one of the top technology financial analysts working today. That's because, as a consultant, senior adviser, and board member for Silicon Valley venture capital firms, Michael enjoys privileged access to pioneering CEOs, scientists, and high-profile players. And he brings this entire world of Silicon Valley "insiders" right to you...
- He was one of five people involved in early meetings for the $160 billion "cloud" computing phenomenon.
- He was there as Lee Iacocca and Roger Smith, the CEOs of Chrysler and GM, led the robotics revolution that saved the U.S. automotive industry.
- As cyber-security was becoming a focus of national security, Michael was with Dave DeWalt, the CEO of McAfee, right before Intel acquired his company for $7.8 billion.
This all means the entire world is constantly seeking Michael's insight.
In addition to being a regular guest and panelist on CNBC and Fox Business, he is also a Pulitzer Prize-nominated writer and reporter. His first book Overdrawn: The Bailout of American Savings warned people about the coming financial collapse - years before the word "bailout" became a household word.
Silicon Valley defense publications vie for his analysis. He's worked for Defense Media Network and Signal Magazine, as well as The New York Times, American Enterprise, and The Wall Street Journal.
Michael is 100% independent and receives absolutely no compensation from companies he writes about. His ideas are completely his own.
So, it probably goes without saying that you won't ever be left in the dark about breaking innovations, ahead-of-their-time technologies, and breakout companies on the cusp of changing the world once you join this world.