Tip, Biotechs are new enough to the investing world that there are no tried and true rules. Each case is a special one. What I try to do is not only look at the trials of biotechs, or tests of medical device companies, but at who does the trials. So often, the testers have a game to play. So, when a Vaso gets thumbs up from The Mayo Clinic, I have to sit up and take notice. They are much too small a company to have any sway over an institution like that.
I had this sort of problem several years ago with a company called Biocryst. I liked the cut of their gib, in general, but I was suspicious of the fact that all of the principal players were from a University of Alabama campus and that is where the trials were taking place. As it turned out, one of the first drugs had some problems and the Alabama school reported the facts right down the line. Though that was certainly disappointing, it made me confident that these guys and their testing hospital weren't a bunch of scamsters, and BCRX has been a great stock for me.
But I have bought some clunkers in the past. Shaman stands out in my memory. So, you can do your best due dilly and still come up with a fist full of Glotnys. <g> |
