Heh, that's nice! But seriously, putting a
portfolio together is terrific fun, but
mindboggling if you let it be. I'd like to
have a dash of influence. It would be
wonderful if the VD portfolio guys and
Peter had a few stocks to submit for further
scrutiny. And against the backdrop of Sepracor
and Elan, clearly there are other strategies
that are wildly profitable in retrospect.
I can ask easy questions (you tell me if
they're good or not, heh).
For instance, these companies are, first
approximation, similar. But how do you
choose between? The marketcaps are similar,
the quality of the science is probably about
the same. But one is cheaper than the other
and further along. Recently, Ariad also has
been outperforming, perhaps getting ahead
of itself. ARIA vs CEGE:
finance.yahoo.com
Ariad has something on the order of
100M in assets, but Cell Genesys, with
a marketcap 100M less, actually has more
than twice as much cash n' stuff (which
includes quite a lot of abgx too).
Pipelines:
ariad.com
cellgenesys.com
cellgenesys.com
Next paragraph, diversification can wreck your
performance. I don't think you want to split a
position between the two, but rather, simply
pick the better stock.
And finally, of course, is it okay to take much
greater risk to stalk the elusive ten bagger?
This portfolio is suppose to have ten stocks,
you only need one, as we know. I think if you
are willing to watch a position melt to zero,
you load the basket with exceedingly risky stuff
that does not suck. |
