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Biotech has always had this interesting dual personality; research vs. products, burn vs. earnings, stereotypical white lab coat set and the management types; MD/PhD vs. MBA. Jekyll vs. Hyde? The distinction isn't always clear.
And then there's value vs. momentum.
Many of the biggest moves in biotech have been on momentum; that is, the gains are based on perception and the investing public falling in love or hate with an issue more than value. We've seen this many times. Such plays can be very high return but may also carry inordinate risk.
There is a lot of very, very good discussion on SI regarding biotech value. But while discussions of momentum, day trading, shorts and volatility plays including derivatives come up they are often lost in the general discussion. Often these posts are very interesting and sometimes very incisive.
I'd like to add a forum for discussions of this type; momentum plays in pharma, biotech and medical devices. In addition, I would encourage the interface of value investors and momentum types (assuming these are not the same bunch). We have an arguably volatile and some would say speculative market-the highest returns are likely to be in companies that have excellent value and are just attracting attention with their stories and hence momentum. Others have the momentum but it may be mostly hype. We already know about value as it is well discussed elsewhere on SI.
Please feel free to jump in with ideas, recommendations, discussions and passionate (but please-informed)rants. Discussions of TA and trading tools as they apply to this market segement are welcome.
CAVEAT: Momentum plays are highly speculative. While attractive to many investors, YOU MUST do your own Due Diligence before you invest in anything, even when it's hot. If you trade momentum, you know the rules and you are aware of the high risk.
Intelligent discussions of long or short positions are welcome but if you come in touting a particular POV and have no real underlying knowledge of the issues you probably will find yourself up against people who DO know the issues and could look pretty silly. So discussion please-but avoid touting or short ravings.
I hope you will find the discussions to be of value.
RWR
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