Category: Biotech Investing 101

Biotech Stock Investing 101 – What to Look For?

Buying stocks in the biotech industry can be very complicated. Following are some basic tips to help you get started. Acquisitions Look for companies that are making acquisitions. An organization that is making a purchase should ideally have some solid foundation, as well. Acquisitions do happen quite a lot, but when a company is looking to buy another one, and there is substantial money involved, you can bet those making the purchase believe it’s going to be lucrative to them. The higher the cost they pay to acquire another company, the more likely it is that their stock is...

Read More

Buying Biotech Stock Shows Big Losses & Massive Gains: How To Stay Ahead?

Biotech companies that know how to acquire the right assets are the companies that you want to acquire.  Alexion Pharmaceuticals is a company that a firm like Goldman Sachs has generally gone cold on in recent years. But you may have to look at the entire industry before you automatically discard Alexion.  Cash Return on Invested Capital is something that you are going to want to survey when you are evaluating a stock.  Firms are beginning to spend more on research and development.  Swedish biotechnology firms spent around 4.1 million dollars on research and development alone.  You may want...

Read More

The Most Insane Market: Biotech

Biotechnology is a process that makes use of living systems and organisms to make products. In the recent years, the biotech sector has been booming with stocks related to the biotech industry appreciating significantly. Technological advancement has resulted in increased efficiency in the manufacturing and experimental processes. There has been a development of applications that integrate technology with biological systems living derivatives and living organisms to create processes and products for particular uses. Overview Depending on the tools and applications used, the sector overlaps with biomedical engineering and bioengineering sectors. With the widespread cases of various illnesses and medical conditions, many industries in the biotech sector are striving relentlessly to save lives. The increased demand in the medical products has resulted in the consistent growth of the sector. Biotechnology industries currently focusing on drug development and clinical research for disease and medical conditions treatment are proving to be quite profitable. In general, biotechnology has four major industrial areas. These include environmental uses, medical (health care), agriculture and crop production, and non-food (industrial) uses of crops. Non-food industries include those that manufacture biofuels and biodegradable plastics. Biotechnology is also important in your daily life because for instance one of its applications is the directed use organisms for manufacture of products like milk derivatives. The Companies Many biotechnological companies are not profitable since they specialize in research. The technology comprises of...

Read More

Tips to Trade Biotech Stocks

Biotech stocks are becoming an important part of the Nasdaq market with big growth potential. There are good opportunities for traders, although price movements are at sometimes quite wild. Biotechnology stocks are generally used for short-term trading strategies. These stocks can have huge movements in a single day, which makes them excellent stocks for day traders. However,  biotechnology stocks also have week trends which make them good vehicle for swing traders. Market Research Active investors who implement analysis techniques could use the biotechnology sector for their investment strategies. Good market research is required for using fundamentals for biotech stock...

Read More