I think you nailed it @IronPig I've been playing this sector for...

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Shalako

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03/10/23

16:47

Post #: 70152119
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Originally posted by IronPig: ↑

Hi Taureanbull, thank you for your kind words and feedback.

Experience has just come from exposure across a number of biotech stocks and the love of learning about the sector. I am definitely not an expert and still have a lot to learn. Somehow my portfolio became heavily waited in the biotech sector, probably because I find it is one of the most exciting and mentally stimulating sectors to be involved with on the ASX. The companies have a purpose, the science is fascinating, and it really can change lives for both patients and investors.

It is also one of the sectors where I think you can find companies that fit the well documented and successful criteria models of great investors such as Benjamin Graham and Warren Buffett. I know they would never invest in biotech because of the risk factor, however I believe that most of the other criteria is there if you go looking, such as….Is there a need and a market for the product. Is it an exclusive or sizeable market, look for first in class or orphan drug designation. Extreme value buying where the SP just doesn’t represent the value of the company, intellectual property or forward earning potential, significant future SP upside. Protection of market position with long patents. Great management capability, have they done this before and been successful.

So I think you need to be able to do three things, be able to find companies that have the above attributes, have a long term investment strategy where the SP will align with true value over time and how to manage your risk.

The first two are fairly straight forward and just involve time. For risk I believe that can be managed by diversifying your biotech portfolio. Given statistically it is only about 1 in 8 that are successful, you need to play the odds in your portfolio and find around 8 to 12 biotech companies that have the previous mentioned attributes with a high reward factor. If you can do this I think you can stack the odds in your favour.

I like IMU for the above reasons and more so as they are well diversified in their own right with multiple assets.

If you don’t mind taking on risk, don’t get to emotionally caught up and have realistic expectations I think biotech is a great place to be.

These are just my thoughts and strategies that I apply towards the biotech sector and shouldn’t be considered as advice but things to think about.

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I think you nailed it @IronPig I've been playing this sector for a while now and enjoying the challenge with some success. This one was outstanding, alas, emphasis on the was, but we're not out of the game yet despite some magenta colouring. Looking for a deep verde now among the deep merde.

IMU Price at posting: 4.7¢ Sentiment: Buy Disclosure: Held
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0 Great analysis

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(20min delay)
Last 8.2¢		Change 0.003(3.80%)		Mkt cap ! $600.2M

Open	High	Low	Value	Volume
8.0¢	8.4¢	7.9¢	$1.166M	14.18M

Buyers (Bids)

No.	Vol.	Price($)
3	409605	8.2¢

Sellers (Offers)

Price($)	Vol.	No.
8.3¢	787931	5

View Market Depth

No.	Vol.	Price($)
3	409605	0.082
10	1580764	0.081
10	474737	0.080
8	836004	0.079
7	379583	0.078

Price($)	Vol.	No.
0.083	787931	5
0.084	1431962	6
0.085	1872021	15
0.086	1126498	6
0.087	693671	5

Last trade - 16.10pm 29/04/2024 (20 minute delay)


Last 8.3¢		Change 0.003 ( 4.93 %)
Open	High	Low	Volume
8.0¢	8.4¢	8.0¢	4842402
Last updated 15.59pm 29/04/2024 ?

IMU (ASX) Chart

I think you nailed it @IronPig I've been playing this sector for...

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