Investing in biotech stocks - My experience so far

BrockStoker

moneyfoolish said:

BrockStoker said:

SA on Amyris:

Amyris (AMRS) presents a unique opportunity with their recent news of a revolutionary way to synthesize cannabinoids. They plan to synthesize CBG molecules (a precursor of CBD and other cannabinoids) with yeast. Of course, this is not a product intended for the psychoactive cannabis industry, but the implications of their innovation.

They are trying to improve the ability to concentrate CBD and other cannabinoids without using grow facilities. This will allow for more potent CBD products and the ability to conduct medical research on curative effects with a higher concentration of cannabinoids. There is huge potential here for business success.

Their technique may change the CBD game in many ways. CBD particulate would be less expensive to manufacture and may be more potent than plant grown CBD. They have already scaled this production and plan to produce 1 ton of CBD distillate.

Amyris has entered the CBD health market through their new CBD health brand. The company already has wide distribution of their products and ingredients. Revenue from this new brand will be reflected in 2021 financials. We will also see the revenue or cost savings of their new synthesized CBD. In their Q2 YR2020 presentation, cannabinoids are listed under upcoming revenue and business strategies.

https://seekingalpha.com/article/4404920-amyris-changes-cannabis-game-and-hits-new-52-week-high

Amyris took off like a rocket early on in today's session, but then the markets decided to change direction sharply. Even so, Amyris ended well in the green, while everything else was red. I got a couple of screenshots before the change in direction:

Looks good. Hopefully, will pass the £100,000 mark again soon and continue moving upwards!

Any significance in the very large sale of almost $8 million of Arrowhead options by Patrick O'Brien just now?

Once again, I'm not really concerned by insider selling, as long as they are not selling out the majority of their positions. I look at it this way: They know that the share price is likely to reach $1000+, so as long as they still have a few tens of thousands shares then they will have $10's of millions (more likely 100's). In the mean time they want a "bit" of cash to support their high-flying lifestyles, which is fine. 
More importantly I think, look at the overall trading volume. It's very low, suggesting the vast majority of stock holders are loathed to sell any shares at all. I think it's setting up to be extremely bullish, if/when more spectacular data comes out - low liquidity and high demand, if I'm not mistaken, should drive the share price much higher in a short space of time.

BrockStoker

csgohan4 said:

Voyager2002 said:

csgohan4 said:

Cus said:

Thrugelmir said:

adindas said:

csgohan4 said:

adindas said:

Did anyone manage to make huge profit on OCGN (Ocugen). I was up 670% yesterday in less than a month

I sold half my position yesterday.

bet you wish you dumped 10k into it earlier

Well, you should not do that. I myself never do that. I normally open position lower than £200 and the keep dollar averaging in either direction up or down. Playing the game with penny stock is very risky and you  should only invest the money you could effort to lose.

Last of the big spenders. A decent punt has to start at £5k.  Then upwards from there. 

Are you mocking someone who doesn't invest at the levels you do?  A decent punt to one person is different to another.  What's the point of your comment?

What Adindas trades appears very speculative and has a short term angle, you could argue it has a gambling element to it.  Based on that it is totally appropriate to minimise potential losses and only invest what one can afford to lose.

To be fair, more often than not, Adindas punts turn out to be winners from track record. Of course we don't have the ones that have tanked and not mentioned on here. But if they put in 10 K, they would be minted by now

Everyone has different risk appetite, what dumping 100£ is high risk to someone dumping 100k

Your observation is accurate, but remember that generally there is a fixed cost for each trade, regardless of the amount being traded. This means that for small amounts the transactions costs are likely to represent an unacceptably high proportion of the total value of the trade. A rational response would be to trade only relatively large sums.

To punt 10k on an unknown is brave and takes alot of research, but even the best research in the world won't prevent stocks from tanking, take Nio for example, looked great initially but then not later.

I'm not sure if that's totally true. While I didn't pay a huge amount of attention or do any serious DD into NIO, I think I remember there being some "red flags" which even basic DD should have picked up.

I think all you have to do is avoid the stocks like NIO (the ones that will loose significant capital), then as long as the majority of picks just do OK, you only need a couple of big winners among them to turn a tidy profit.

I do agree though, each to their own - while taking larger punts is probably going to be more efficient at getting you where you want to go, everyone should try to remain within their own risk tolerance. I think adindas has shown that his strategy is a viable one.

Thrugelmir

Cus said:

Thrugelmir said:

adindas said:

csgohan4 said:

adindas said:

Did anyone manage to make huge profit on OCGN (Ocugen). I was up 670% yesterday in less than a month

I sold half my position yesterday.

bet you wish you dumped 10k into it earlier

Well, you should not do that. I myself never do that. I normally open position lower than £200 and the keep dollar averaging in either direction up or down. Playing the game with penny stock is very risky and you  should only invest the money you could effort to lose.

Last of the big spenders. A decent punt has to start at £5k.  Then upwards from there. 

Are you mocking someone who doesn't invest at the levels you do?  A decent punt to one person is different to another.  What's the point of your comment?

What Adindas trades appears very speculative and has a short term angle, you could argue it has a gambling element to it.  Based on that it is totally appropriate to minimise potential losses and only invest what one can afford to lose.

Not mocking. Better to identify the really good opportunties that come along infrequently and go big. Than be spread wide and thin. Dealing costs, wide spreads all eat into profits and extenuate losses. If one is concerned about making losses. Then penny and blank cheque growth stocks is the last place to be invested. Pump and dump isn't a new game. 

Michael121

csgohan4 said:

To be fair, more often than not, Adindas punts turn out to be winners from track record. Of course we don't have the ones that have tanked and not mentioned on here. But if they put in 10 K, they would be minted by now

He doesn't post his losers though, of course his track record looks good. 

csgohan4

Michael121 said:

csgohan4 said:

To be fair, more often than not, Adindas punts turn out to be winners from track record. Of course we don't have the ones that have tanked and not mentioned on here. But if they put in 10 K, they would be minted by now

He doesn't post his losers though, of course his track record looks good. 

You can of course suggest different ones yourself and see how good you are as well, instead of relying on internet strangers for your hard earned cash. 

My risk appetite is a bit lower than Adindas, but fair play, they've made alot of money through taking risks. 

Michael121

csgohan4 said:

Michael121 said:

csgohan4 said:

To be fair, more often than not, Adindas punts turn out to be winners from track record. Of course we don't have the ones that have tanked and not mentioned on here. But if they put in 10 K, they would be minted by now

He doesn't post his losers though, of course his track record looks good. 

You can of course suggest different ones yourself and see how good you are as well, instead of relying on internet strangers for your hard earned cash. 

My risk appetite is a bit lower than Adindas, but fair play, they've made alot of money through taking risks. 

I don't buy individual stocks, i have a browse on here but i don't follow anyone into anything that would be an easy way to lose all my money. 

BrockStoker

Another day, another pop. Today it's EVFM's turn - up 12% so far.

https://finance.yahoo.com/quote/EVFM?p=EVFM

BrockStoker

Here's a penny stock which could be a 20+ bagger:

https://finance.yahoo.com/quote/TNXP?p=TNXP

3-4K shares in a company like this could turn into millions in a few years. Seems like a good risk/reward profile, although I have not done any serious DD. It is a covid stock, and this could be a bubble, but I think it could be worth the risk. Looks like a healthy pipeline so even if covid products don't pan out, complete loss of capital seems quite a distant possibility. I certainly wouldn't bet the farm on it, but it's worth a try, and could make big gains in the short term as well as medium-long term IMHO

BrockStoker

If anyone is paying attention, AMRS buying opportunity happening right now. Down 14% because the sector is down. ARWR is also a buy today IMHO.

moneyfoolish

BrockStoker said:

If anyone is paying attention, AMRS buying opportunity happening right now. Down 14% because the sector is down. ARWR is also a buy today IMHO.

I bought some ARWR 3 days ago and some AMRS yesterday. That's good timing for you!!!!!