[Ed. Note: Dr. KSS writes about medicine and biotech stocks for the Irregulars. He has agreed to our trading restrictions, chooses his own topics, and his words and opinions are his own. All of his past articles and most recent comments are on his Stock Gumshoe page.]
“Peaches come from a can
They were put there by a man
In a factory downtown
If I had my little way
I’d eat peaches every day….”
—-The Presidents of the United States of America, “Peaches”
We apologize for the production delays, travel plans, other matters needing attention and market fickleness that have delayed the presentation of this list. We also worried about dump-trucking on you more good ideas than you could digest in brief sittings, and provoking angst from fear that you were missing out on fine opportunities for not having time to conduct a diligent review of them. In one instance a good long thesis surprisingly unraveled in an unforeseeable way, and in another, a situation that was simply better than our original choice demanded attention.
Remember the ground rules. First, none of the six stocks I am about to present are ones I advise you to buy. We don’t give trading advice. They are, however, stocks that have particular merit, in my view, and that warrant being floated as long ideas for your consideration. I can make no promises that any of them will generate profits for you because biotech is a moody beast. Biotech brings with it not only scientific risk (will the data support advancing our drug?) but also financial risk (will we have enough money to advance it?), managerial risk (will managers at the company make the right moves in a timely way in response to data and events as they emerge?), clinical risk (will the new drug be popular with prescribers and will patients actually use it?) and execution risk (will the company do everything it must, from bench research to clinical trials to regulatory submissions to cap raising to building the right sales force or selling the company to bring fruition to the shares you hold?). Biotech companies are also unduly subject to “mob risk,” by which I mean the passions and zeal that certain biotech companies inspire among Twitterers and bulletin board posters for literally no reason (remember $CEMP?). Biotech mobs rarely listen to reason, and can pan a stock as wantonly and whimsically ...