>>>to invest in bios that have well proven products than the dream juice.<<<
Doc, I think I understand what you mean by recommending to buy a matured company for buy and hold strategy. But I thought a stock price is always the market sum of its knowledge. If everybody knows its product is a success, the stock should be pricey already. The upside will be very limited although the downside will be limited too. Only when there is risk, there will be more upside potential.
Personally, I like the risk we are talking about here re DEPO, and I don't like companies such as Coca-Cola, despite their strong management (partially died recently, though) and proven/stable products. DEPO is not that speculative either, unlike ENMD or GERN, which are truly spoiled by undeserved news media attention, or hype. There is no hype in DEPO. There is a good product that has a recent chance for success. And we do see revenue and earnings additions right before the eyes.
I guess it is a personal favor thing. It is also a risk/reward thing. There is no such thing as to be a sure winner in the stock market, even for long term holder. If we are willing to take more risk, there may be more reward, although that more risk definitely means potential huge loss too. But on the other side, even if we bought stocks such as Warner-Lambert which has good record, good management, and diversified products, we might have taken dive too. There are very few companies in this world that will tell us the future is going to be always bright, and its stock price is still reasonable. |
