Investing in biotech stocks - My experience so far

adindas

BrockStoker said:

adindas said:

BrockStoker said:

Biotech/healthcare, and in particular vaccine stocks ARE only just getting started I believe. As humans encroach further into relatively undisturbed natural habitats, more potentially dangerous viruses WILL emerge. They are already:

https://www.bbc.com/future/article/20210106-nipah-virus-how-bats-could-cause-the-next-pandemic?utm_source=pocket-newtab-global-en-GB

Now is the time to invest IMHO! I may yet consider buying back Gritstone (and/or other covid/vaccine stocks), but right now I don't have cash so it will have to wait. For those not wishing to hold stocks, I still think funds (OIECs and Trusts) are a great way to play it.

Based on what I have read Gene editing, Mapping is one of the hot areas that will see the best growth comparing to other sectors in the next few years.

Many of them are still penny stocks so the upside potential is huge. It is only that there are a lot of bogus players as well, ready to scam investors.

The way I save my time is to initially have a look on what wall street analysts have been saying, whether there are reputable institutional investors are willing to invest in this stock, at what price they are willing to buy/sell/hold. If all of that is good it is probably worthy to start investing your own time to investigate it.

Yes, I fully agree regarding gene mapping. Picks and shovels. I liked (and still do like) Ten Times Genomics (TXG) for this reason. It made me a reasonable (though not earth shattering) profit. Could be a lucrative long term hold. While I don't currently hold any mapping stocks individually, the Schroeder UK public private trust which I hold has some Oxford Nanopore which is in that space.

Have you got (or considered) holding the Ark Genomics fund? It might be the easiest/safest way to play this theme/space, although I think I'd wait for a significant pullback before investing.

The entire biotech sector is quite high now, and I should have said in my previous post, it might be an idea to wait for a pullback, or at least not go all in just yet!

Going back to the gene mapping though, I also agree, best to be weary of the very small stocks, unless you have done serious DD. Of course Illumina is the go to large cap stock in the space, but it's a slow n steady long term growth type stock that IMO would be a nice compliment to hold in a less racy portfolio along with stocks like Intuitive Surgical (large cap robotic surgery stock), and perhaps some big pharma - that is the kind of portfolio I might consider once I'm done with the smaller/riskier fast growing stocks.

I cannot get ARK Genomic Revolution Multisector ETF (ARKG) from my broker. If I could I will definitely put my money in it, it is a much saver option in this area.

I think not many people (If any) people could buy that from EU/UK brokers due to regulatory hurdles: Key Investor Information Documents (KIIDs) that they do not have.

bowlhead99

adindas said:
I cannot get ARK Genomic Revolution Multisector ETF (ARKG) from my broker. If I could I will definitely put my money in it, it is a much saver option in this area. 

I think not many people (If any) people could buy that from EU/UK brokers due to regulatory hurdles: Key Investor Information Documents (KIIDs) that they do not have.

You won't get it in a UK tax wrapper as a retail investor as the UK brokers and platforms can't sell it to you due to the regulatory stuff. And if you found it independently (e.g.) via some other rogue non-EU broker that would give you an account, you would have the tax problem that it is not registered as a reporting fund under HMRC's offshore funds regime, meaning that any gains you made on it would be taxed as income rather than capital gains which could be quite painful to manage.

BrockStoker

That's a shame. I have a feeling it's available on my off shore platform (but can't log in to check as it went inactive and I can't log in right now - trying to get that sorted), but as bowlhead says, it's probably not a good idea.

Hopefully at some point it will be made available if they sort out the regulatory stuff.

In other news, Amyris has just announced an acquisition, and I'm guessing investors are liking the news as it's up in pre market trading:

https://finance.yahoo.com/news/amyris-acquiring-terasana-brand-offer-130000647.html

bowlhead99

BrockStoker said:

That's a shame. I have a feeling it's available on my off shore platform (but can't log in to check as it went inactive and I can't log in right now - trying to get that sorted), but as bowlhead says, it's probably not a good idea.

Hopefully at some point it will be made available if they sort out the regulatory stuff.

Most US-based fund managers have no real interest in sorting out regulatory stuff for EU and UK retail investors if they have already raised an $8bn fund from domestic US investors and institutions and would struggle to deploy $50bn into the same strategy.

The fund will be on a lot of people's radar due to the high performance, but if you look at its history since inception, it doubled its money over the first five years to early 2020 (just like the wider S&P), then dropped with the wider S&P as covid hit, and then suddely quadrupled in a space of less than a year.  So the '$10k became $55k over 6 years' is a cool story but not necessarily representative of what might happen next  

Michael121

bowlhead99 said:

BrockStoker said:

That's a shame. I have a feeling it's available on my off shore platform (but can't log in to check as it went inactive and I can't log in right now - trying to get that sorted), but as bowlhead says, it's probably not a good idea.

Hopefully at some point it will be made available if they sort out the regulatory stuff.

Most US-based fund managers have no real interest in sorting out regulatory stuff for EU and UK retail investors if they have already raised an $8bn fund from domestic US investors and institutions and would struggle to deploy $50bn into the same strategy.

The fund will be on a lot of people's radar due to the high performance, but if you look at its history since inception, it doubled its money over the first five years to early 2020 (just like the wider S&P), then dropped with the wider S&P as covid hit, and then suddely quadrupled in a space of less than a year.  So the '$10k became $55k over 6 years' is a cool story but not necessarily representative of what might happen next  

Seems outrageous to think such a high performer will do the same again in the next 5-10year. If it was that easy everyone would be on it.

BrockStoker

Michael121 said:

bowlhead99 said:

BrockStoker said:

That's a shame. I have a feeling it's available on my off shore platform (but can't log in to check as it went inactive and I can't log in right now - trying to get that sorted), but as bowlhead says, it's probably not a good idea.

Hopefully at some point it will be made available if they sort out the regulatory stuff.

Most US-based fund managers have no real interest in sorting out regulatory stuff for EU and UK retail investors if they have already raised an $8bn fund from domestic US investors and institutions and would struggle to deploy $50bn into the same strategy.

The fund will be on a lot of people's radar due to the high performance, but if you look at its history since inception, it doubled its money over the first five years to early 2020 (just like the wider S&P), then dropped with the wider S&P as covid hit, and then suddely quadrupled in a space of less than a year.  So the '$10k became $55k over 6 years' is a cool story but not necessarily representative of what might happen next  

Seems outrageous to think such a high performer will do the same again in the next 5-10year. If it was that easy everyone would be on it.

The stocks it's invested in are highly disruptive. Gene therapy and gene sequencing are the future of medicine, without doubt. It's not unlike buying into oil stocks at the start of the last century. So yes, it could potentially keep doing what it has been doing in terms of performance, although I think it is currently in a bubble, with many of it's stocks overbought on pure speculation:

https://seekingalpha.com/article/4399678-arkg-potential-disruption-for-healthcare-and-pharma-industries

Personally I'd only consider investing (given the opportunity) after a significant correction.

BrockStoker

This is another one I like:

https://seekingalpha.com/article/4400342-schrodinger-long-term-compounder-literally-unlimited-tam

Again I'd invest if I had spare cash, and if there was a good entry point.

adindas

BrockStoker said:

adindas said:

BrockStoker said:

Biotech/healthcare, and in particular vaccine stocks ARE only just getting started I believe. As humans encroach further into relatively undisturbed natural habitats, more potentially dangerous viruses WILL emerge. They are already:

https://www.bbc.com/future/article/20210106-nipah-virus-how-bats-could-cause-the-next-pandemic?utm_source=pocket-newtab-global-en-GB

Now is the time to invest IMHO! I may yet consider buying back Gritstone (and/or other covid/vaccine stocks), but right now I don't have cash so it will have to wait. For those not wishing to hold stocks, I still think funds (OIECs and Trusts) are a great way to play it.

Based on what I have read Gene editing, Mapping is one of the hot areas that will see the best growth comparing to other sectors in the next few years.

Many of them are still penny stocks so the upside potential is huge. It is only that there are a lot of bogus players as well, ready to scam investors.

The way I save my time is to initially have a look on what wall street analysts have been saying, whether there are reputable institutional investors are willing to invest in this stock, at what price they are willing to buy/sell/hold. If all of that is good it is probably worthy to start investing your own time to investigate it.

Yes, I fully agree regarding gene mapping. Picks and shovels. I liked (and still do like) Ten Times Genomics (TXG) for this reason. It made me a reasonable (though not earth shattering) profit. Could be a lucrative long term hold. While I don't currently hold any mapping stocks individually, the Schroeder UK public private trust which I hold has some Oxford Nanopore which is in that space.

Have you got (or considered) holding the Ark Genomics fund? It might be the easiest/safest way to play this theme/space, although I think I'd wait for a significant pullback before investing.

The entire biotech sector is quite high now, and I should have said in my previous post, it might be an idea to wait for a pullback, or at least not go all in just yet!

Going back to the gene mapping though, I also agree, best to be weary of the very small stocks, unless you have done serious DD. Of course Illumina is the go to large cap stock in the space, but it's a slow n steady long term growth type stock that IMO would be a nice compliment to hold in a less racy portfolio along with stocks like Intuitive Surgical (large cap robotic surgery stock), and perhaps some big pharma - that is the kind of portfolio I might consider once I'm done with the smaller/riskier fast growing stocks.

Another ones are Pacific Bio Science (PACB). Both PACB and 10X Genomics (TXG) are part of the ARKG ETF holdings. So it is a good sign to start your own DDs..

BNGO were on the dip due to stock offering, but it is now start bouncing back.

BNGO has a huge upside potential as it is still under $10. There is an article about what their Saphyr System could do in here:

https://finance.yahoo.com/news/bionano-genome-mapping-platform-could-235053495.html

BrockStoker

PACB was one of the big holdings in the Polar Capital Biotechnology fund which I currently hold, but appears to have been removed from the top ten holdings now:

https://www.polarcapital.co.uk/gb/professional/Our-Funds/Biotechnology#/Portfolio

It's done very well for me.

I agree BNGO still has a lot of room to grow.

There are almost too many stocks with excellent prospects right now, making it hard to know which to go for, but I think almost any small selection (within reason) should do very well. The one thing I would avoid doing is spreading your money too thinly (which is tempting to do if my experience is anything to go by).

BananaRepublic

BrockStoker said:

Michael121 said:

bowlhead99 said:

BrockStoker said:

That's a shame. I have a feeling it's available on my off shore platform (but can't log in to check as it went inactive and I can't log in right now - trying to get that sorted), but as bowlhead says, it's probably not a good idea.

Hopefully at some point it will be made available if they sort out the regulatory stuff.

Most US-based fund managers have no real interest in sorting out regulatory stuff for EU and UK retail investors if they have already raised an $8bn fund from domestic US investors and institutions and would struggle to deploy $50bn into the same strategy.

The fund will be on a lot of people's radar due to the high performance, but if you look at its history since inception, it doubled its money over the first five years to early 2020 (just like the wider S&P), then dropped with the wider S&P as covid hit, and then suddely quadrupled in a space of less than a year.  So the '$10k became $55k over 6 years' is a cool story but not necessarily representative of what might happen next  

Seems outrageous to think such a high performer will do the same again in the next 5-10year. If it was that easy everyone would be on it.

The stocks it's invested in are highly disruptive. Gene therapy and gene sequencing are the future of medicine, without doubt. It's not unlike buying into oil stocks at the start of the last century. So yes, it could potentially keep doing what it has been doing in terms of performance, although I think it is currently in a bubble, with many of it's stocks overbought on pure speculation:

https://seekingalpha.com/article/4399678-arkg-potential-disruption-for-healthcare-and-pharma-industries

Personally I'd only consider investing (given the opportunity) after a significant correction.

You may well be right, I really do not know, but this does sound like the dot com boom with talk of disruptive technologies. The Dow Jones Pharceuticals Index does not look to be in boom and bust territory. Carry on like this and you'll persuade me to invest ... Anyway, I have some research to do.