Interesting discussion and some fine points raised.The biotech...

Interesting discussion and some fine points raised.
The biotech sector has certainly had a difficult time in general since COVID arrived in COVID arrive in January 2020.
Even CSL has had some challenges.
@slick has painted a goof picture of the impacts on the biotech sector.

I often invest in mineral explorers, mining companies, biotechs and tech stocks depending on the market view on these sectors at a point in time.

It has often been discuss on Hotcopper the lifecycle similarities of small mineral explorers and small biotech companies. It can take well over 10+ years from discover to production and revenue flow. These smaller companies have to go back to the markets for funds every year or so to continue with their endeavours. Cap raises for smaller biotech and explorers over the last 2+ years have been brutal - money often raised at large a discount after their stock price has already been beaten down.

Some examples of my own investments:

• RAC - Bought in during Feb 2020 around 25 cents and sold all in Sept 2020 for around 78-80 cents. Continue to monitor and research.
• NEU - First bought in around Oct 2021 after researching and watching for several months. Have continued to top up since with each positive announcement. Terrific biotech company still in its early stage of growth. Has been rewarding.
• IMU - Bought and sold at various prices. Lost some money and made some money. Sold some around recent cap raise announcement around 8.8c. Then doubled up around 4.0-4.5c early this year. Up overall on my investment.
• PTX - Promising but is progressing slowly. Bit the bullet and exited my entire holding at a substantial lose. Continue to monitor and research. May re-enter.
• DRE - Rare earth and other minerals. Many positive announcements but share price has pulled back substantially each time they raise capital. Out completely at the moment. Continue to monitor and research. May re-enter at some point. Lost money.
• Others - Mixed bag of other companies with mixed results.

Some of my learnings:

• Research the companies over and over again with each announcement. Be aware of approaching cap raises aligned to ASX good news announcements. Monitor and but shares near the low point after cap raise announcement and before close of the cap raise if their near term plans look to unlock treasures.

• My number one criteria is to invest in companies that have a solid Board of Directors, MD/CEO and Senior Mgt Team - where they have a track record of success in their previous roles. For example, NEU is a small company with a stable Board, MD/CEO & Senior Mgt Team - they "say what they will do" and then "do what they said they will do" - consistent and reliable.

• Exit high-risk stocks like smaller biotech and mineral exploring companies quickly if the market sentiment on those sectors turns negative for a substantial period or the company doesn't look like achieving meaningful, positive and share price enhancing results before the next capital raise unless it is on of your high conviction long-term investment stocks.

NEU's drug Trofinetide was discovered in the lab over 20 years by Dame Margaret Brimble and her team at Auckland Uni. NEU almost went out of business at one point and Dr Trevor Scott funded their existence for a few years I believe before the company got back onto its feet. NEU believes in progress drugs with Orphan Drug Status.