Biotech is in the midst of its longest bull run in history, and there's every reason to expect it will remain an attractive outperformer this year.
how to invest in biotech
- How to Make a (Consistent) Killing in Biotech Investing in 2016
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- "21st Century Cures" Could Revolutionize Biotech
- How to Find the Best Biotech Shares – Every Time
- 60 Biotech Companies to Go Public Before April 1
- One Stock That Will Profit from a New, Breakthrough Medical Direction
- Two Biotech Stocks Set to Double on One Powerful Catalyst
- The Best Biotech Stocks for 2013 Are Now Within Your Reach
- How to Invest in Biotech Now and Double Your Money
Biotech stocks have gotten crushed in recent weeks, with the Nasdaq Biotechnology Index falling 15.5% in the last month and 25% from its July highs.
And while many investors are taking their money to the sideline, this is actually a great time to invest in biotech ETFs with 2016 in mind.
With a net worth of $12.6 billion, Patrick Soon-Shiong, MD, is the world's richest doctor, the richest American in the healthcare industry, and the 96th-richest person on the planet in 2015 according to Forbes.
And just in August, the 63-year-old became $1.1 billion richer -- from a move he'd made only eight months prior, according to Bloomberg...
No one is thrilled with the way new drugs and medical devices come to market in the U.S. - not the biotech and pharmaceutical companies, not the regulators at the Food and Drug Administration (FDA) or National Institutes of Health (NIH), not physicians, and certainly not patients desperately in need of new therapies.
The process is hugely expensive and incredibly slow. According to the Tuft's Center for the Study of Drug Development, the average cost of bringing a new prescription drug from lab to market now tops $2.5 billion and takes more than 10 years.
That can make for a real thrill ride where investors are concerned, as share price for a pre-profit biotech can rise and fall dramatically and unpredictably with every related data release, financial report, news item, or regulatory hiccup over an entire decade, making long-term investment a crapshoot, at best.
When you're evaluating most new stocks, it makes good sense to look at technical indicators - such as price-to-earnings ratio (P/E), profit margins, or revenue per share, to name a couple - so you know what you're buying.
But here's the rub: When you're scouting a promising biotech stock, the indicators I mentioned just won't tell you what you need to know.
Of course, we're dealing with a sector that can hand out uncommonly large profits, so our approach needs to be a little different.
Biotechnology is tech's fastest-growing sector. In fact, there are more than 100 biotech companies set to go public in 2015.
Of those 100 IPOs, 60 are expected to launch before April 1. So you have to move fast to ride this $320 billion biotech wave.
Those IPOs are all but certain to keep the biotech bull market going through the year. Biotech stocks have soared 290% in the past five years. That's more than triple the S&P's 88%.
Modern medicine, for all of its sophisticated drugs, complex gadgets, and amazing surgical procedures, rarely cures anything. It treats. It manages. It postpones the inevitable.
But return a patient to normal, optimal health?
So when an innovation comes along that can effect a complete and permanent remission of disease or restore damaged organs to a pristine state, it should cause your keenest investing instincts to perk up and pay attention...
[Editor’s Note: We’re sharing this edition of Private Briefing with you because the two profit-doublers Bill is looking at right now are about to break out, thanks to a little-understood catalyst that heralds big share price hikes. Here’s Bill…]
When I earned my MBA from the Rochester Institute of Technology back in the mid-1990s, my focus was finance and investing.
But it was a management professor who clued me in to some of the best ways to "look past the numbers" and understand what really makes a big company tick.
The professor, Janet C. Barnard, retired a few years back and, sadly, passed away in 2012.
The talks that she and I had were invigorating "mini-lessons" - which is why we were still having them years after I tacked my graduate-degree diploma to my office wall.
I often "shared" those lessons with my readers - quoting the management professor in stories I wrote back during my days at The Baltimore Sun, as well as in columns I've written for you folks here at Money Map Press.
Biotech stocks are soaring in 2013 as major innovations in healthcare have offered enormous breakthroughs on once-untreatable diseases and conditions.
But for years, it was tricky to invest in some of today's best biotech companies given their volatility and uncertainty in the industry. For the better part of five years, some of today's leading biotech stocks remained essentially flat.
For some time, it was best to stick to large-scale pharmaceutical companies with a strong yield and avoid mass speculation in hit-or-miss penny stocks.
Well, not any more. Shares of the iShares NASDAQ Biotechnology Index (ETF) (NASDAQ:IBB) - which tracks industry returns - are up a staggering 42% since the beginning of the year, and the health/biotech industry has the highest returns of any sector for the year.
And you haven't seen anything yet...
With one of the most exciting biotech companies now joining the NYSE and another setting its focus on an uplisting, we're seeing major changes in the biotech industry and investment. And there are companies poised to become the best biotech stocks you can find right now.
Some of the most lucrative opportunities you can find now are in the biotechnology industry – which is why we've been working to uncover the best ways for how to invest in this sector.
The best biotech companies overflow with innovation. They can offer a steady stream of game-changing products – which often translates to record-breaking revenue.
The biotech industry is also known for its stiff competition. The race to be a consumer favorite causes companies to take big risks.
Sometimes, these lead to embarrassing flops, but when they get it right, the payoffs are huge.