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Strategies & Market Trends : Picks of the quarter -- Ignore unavailable to you. Want to Upgrade?

To: Taro who wrote (5025)	1/28/2008 3:14:36 PM
From: Mike McFarland	Read Replies (1) \| Respond to of 20435

Many of the little companies I have been following for the past five to ten years have been on a death march. They're not healthy enough to run marathons. But for the purpose of a three month contest, you never know. One or two might get bought out, they're all cheap enough--my four picks have very low marketcaps and will close up shop or merge or sell out eventually. That is perfectly normal among micrcap biotechs--you might only find one multibagger in a basket of ten stocks. I think if a person screened for the cheapest dozen stocks in the sector, he would find several bought out within the next six months or so. And several will go out of business. Biotechnology stocks are crazy--and sometimes fun. I have a little less than 2% of my net worth in a speculative microcap biotech. Alas, it's been a real turd the past six months. And down again today--off six percent, but very thinly traded. But if it goes to zero that will just cut my return for the year from 4% to 2% I guess. Worse, I'll have sucked again at this contest.