Edward Lance lorilla,
Identifying the best biotechs to buy— and timing them to near perfection— is one of the fastest ways to grow a trading account.
But it can be really hard to make a living as a buy and hold biotech investor.
Even the best minds in the world try and can't.
Which means we have to find an exciting catalyst event and trade the price action.
Most of these companies are tiny and essentially count on one drug.
There are several things we want to look at, but most important is what phase the trial is in.
There are 3 main trial phases:
Phase 1 - basic safety
Phase 2 - real safety, very basic efficacy (a lot fail it)
Phase 3 - real efficacy (most fail it)
So the higher the phase is, the more expensive the company usually is by that point.
If phase 3 is successful, we can see stocks go up 20-30%, even as much as 200-400%.
If a company has good trial results, it's likely that the stock is going a lot higher.
Especially if those results are for an "indication"— it's treating something really important… like cancer, diabetes, or a global pandemic.
Here's a couple of biotech catalysts that Kyle is watching, and may put into action through his Trade with Kyle service.
BioNTech (BNTX)
- The company is focused on developing and manufacturing immunotherapies
- As of lately, in a combined effort with Pfizer (PFE), the company has been working on a coronavirus vaccine candidate— BNT162b2
- According to analysts, BNT162b2 is leading the race and is one of the most promising drugs out there— in Phase 1 exploratory trial nearly all participants demonstrated a robust immune response
- If successful, the US government plans to order an initial 100 million doses, worth $1.95 billion, and up to 500 million doses annually thereafter
- The company is expected to release Phase 2/3 data in October 2020
- The stock has been grinding higher lately, slowly inching towards resistance at $100
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