3 Potent Biotech Stocks That Could Pop on Earnings | InvestorPlace
3 Potent Biotech Stocks That Could Pop on Earnings
Like golf, investing in biotech stocks can be cruel game. As Michael A. Gayed explains, the pricing dynamic of individual biotech stocks will often follow the perceived successes — or failures — of drug trials and the multiple approval procedures enforced by regulatory agencies.
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This Wild West mentality is primarily the lure for investors hoping to score big, but it can often be the Achilles’ heel when rational strategies are not applied.
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Why, then, are biotech stocks so volatile? In many cases, the fortunes of individual companies are riding on the marketability of a particular drug in the hopes of selling their proprietary research to a member of Big Pharma. However, the U.S. Food and Drug Administration outlines a very rigorous and complex series of proposals, clinical trials, and safety and effectiveness testing before a drug can be submitted for final approval. Between different stages of testing and approvals, smaller biotech companies are often scrambling to procure high-dollar investment support in an effort to keep cash flowing down the pipeline.
It’s no stretch to say that investing in biotechs can be feast or famine. However, much of the volatility can be controlled either by selecting stable, top-tier names or by applying quantifiable, evidentiary analysis toward more speculative companies.
Here are three such biotech stocks to look at as they approach their earnings reports.
Article printed from InvestorPlace Media, http://investorplace.com/2015/04/biotech-stocks-earnings-atrc-neo-uthr/.
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3 Potent Biotech Stocks That Could Pop on Earnings | InvestorPlace
