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Strategies & Market Trends : Due Diligence - How to Investigate a Stock -- Ignore unavailable to you. Want to Upgrade?

To: ubrx who wrote (157)	4/2/1999 11:21:00 AM
From: Mike McFarland	Respond to of 752

Thanks for the post...I would tend to agree that owning only a few biotech stocks would be risky...but surely a basket, say ten stocks--that should smooth out the ride. I've accumulated ten stocks...and while I constantly feel the attraction of going back to cash and just hitting a few big trades now and then, I don't know if I could stomach it anymore-- it was a lot easier when I was playing with a lot less money, had nothing to lose. Anyway, getting back to my hypothesis... It is very difficult to understand the risks associated with any one company-- and the total knowledge about a company is supposed to be "in the market". So it does seem to me that all one has to do is root out the right sector, and then do a reasonable amount of DD, maybe ten hours a stock, and just throw those darts. Well, time will tell. It just kills me to still see folks raking it in playing the internets. I sure hope when that sector crashes it doesn't drag the cheap sectors down as well--cheap getting cheaper. Thanks again for the response, I'd agree that the risk/reward is certainly there now-- some of these biotechs, mainly micros, are trading not a lot above book value. I suppose that is what initially sparked my interest.