Christmas in July When I studied economics and then a Diploma of...

Christmas in July

When I studied economics and then a Diploma of Financial Planning (from Deakin Uni) way back when we were taught the recommended time to hold a stock or equities was 3 to 5 years, with the best returns accrued over a 7 year time frame, if not longer. This was largely due to the peaks and troughs associated with economic cycles. Successful investor Warren Buffet and his Berkshire Hathaway group espouse to this school of thought and have amassed huge wealth over time by implementing this rationale. Names such as Coca Cola and American Express come to mind when considering their long term holds.

Yet these days, perhaps due to the advent of digital trading and low brokerage fees, the average hold per stock is 5.5 months. That’s right, the average stock is held for less than half a year. In fact the average IMU investor has barely had time to finish reading the bi annual newsletter from Chairman Hopper, and guess what? They’ve decided to sell before the next newsletter arrives in their inbox.

Those having held IMU for 3 to 5, if not 7 years, have done quite nicely from their initial investment. Conversely, based on statistics, the average punter has flown the coup after a few months, no doubt with their tail between their legs and a somewhat bitter taste in their mouth. Hence the discontent and disquiet permeating through these IMU threads from time to time, as many are understandably “not happy Jan,” with the shares performance of late.

That said perhaps I can throw a different light on the equation for those of an open mind. I realise it’s somewhat difficult to do, but if at all possible, bring yourself to forget the past. Take some time out to watch one, two if not three Professor Yuman Fong presentations, and throw in one from Saul Priceman MD while you’re at it. Google their names and then YouTube for all the videos. Having then listened to his confidence in the City of Hope science created by him and his colleagues, maybe, just maybe, you might consider holding just that bit longer. Then if you can find it in yourself to hold for a few more weeks, take a further 10 minutes to listen to Yuman speak next week on a YouTube recording from his upcoming tour of Australia.

For the average holder it’s been painful, trust me I know. But in comparison to like minded biotech stocks in the oncology space (i.e., if there indeed are any), IMO Imugene represents a strong value proposition for those prepared to go the distance. Experienced professional personnel capable of attaining FDA product approvals, cutting edge nHIS imaging technology and complete and partial responses to existing products, are all strings to their bow. Whilst collaborations with leading cancer research facilities including Sloan Kettering and City of Hope in the US are testament to their reputation. Imugene’s cutting edge immunotherapies are both safe and cost effective, making them even more attractive to their big name combination trial partners Merck and Roche, who I might add have over 100 billion USD collectively to spend on Mergers and Acquisitions in 2023. Money required to extend their dwindling pipeline runways.

Now upon re reading this little post to me it doesn’t seem to say anything my followers don’t already know. Indeed it appears to be ad for holding stocks long and investing in IMU. I guess in a way it is. But the caveat must be added that despite Imugene’s diverse and valuable intellectual property it’s not for everyone. And when it comes to clinical trials many fail, as I’m sure you are well aware. Heaven forbid patients can even die, share prices can plummet and in 5 and a half seconds you can be left holding, well holding nothing but the baby. Biotech stocks are ostensibly volatile in nature and not suitable to the so called average punter. Particularly those adverse to risk. As part of a diversified portfolio, maybe. For sophisticated investors who understand the vagaries of the sector. Possibly. For those who have done their research, assessed their financial situation and believe in the science. Definitely.

Either way there’s about 5 and a half months from tomorrow to Christmas. You just have just enough time to get in and out of your chosen stock (T plus 3) and buy some pressie’s before Christmas! If it is IMU, chuck in a hamper for their cancer patients families while you’re at it. Hey maybe we can work on that idea with the team at Imugene.

For those staying long, see you in Noosa.

WMHB

DYOR Seek investment advice as required Opinions only

Nb. Imugene has many products in its pipeline, all of which to date have proven to be safe and low in toxicity when administered to late stage cancer patients.