How is value determined in the health care sector?

Over the years I have followed a lot of bio-tech stocks. From Parkinson's drugs to Cancer treatments and diagnosis to alternate delivery systems crossing the brain barrier. It all gets a bit confusing for even the most savvy investor. How can we expect to be experts in mining, tech and now the medical field? There are a lot of factors to consider when making investments. Make sure you know what to expect and have reasonable time lines on milestones set up by the company. Keep your own timetable as well since companies can stray from time lines.Try to understand all aspects of your investment and ask yourself what drove you to choose this company above others.

The fundamental choices we make in everyday investing determine our long term growth and without starting off right the end result is doomed from the start.If you are determined that health care is the next break out area of investing then look at who's making headlines and try to find those gems that may be flying under the radar. No one likes waiting out clinical trials so I always avoid early stage trial companies that eat through cash like a kid on spring break. Find one that is just getting approvals or is about to get approved. Once companies start to prove the product is in demand and it has been approved; the moment product starts to move you may see a break out.

Innovation is the name of the game. If everyone is rushing to put the same product out your gains may be short lived. Although if your company has a market advantage and is backed by medical studies from industry leaders you may find you have the key to success within your grasp. I have been watching some recent moves in the market for some medical related companies and sometimes I have to stand back and applaud the guys who promoted the company. Its strange how an FDA approval barely moves the market yet the next time around Health Canada approval makes it jump 500%. Amazingly enough a lot of these types of companies don't actually have the ability to produce and perhaps its not their plan to even go in that direction. Some may just hope for "proof of concept" and that a big pharma will see it and move in for a buy-out. That's a tough call though since so many companies want to fight for the same space.

Thomas Braun has been ticking off the milestones at Verisante Technology.

-Health Canada approval

-Verisante Aura Clinical Study Data Analysis Presented at SPIE

-Canadian Cancer Society names Verisante Core a Top 10 Cancer Breakthrough of 2011

-Verisante Starts FDA Approval Process and Provides Operational Update

-Verisante Obtains Australian Approval

-Popular Science Honors Innovative Verisante Aura™ Skin Cancer Detection Device with “Best of What’s New” Award

The audience is there but alas the market is a hungry beast. I think once clients start to take delivery of The Aura then the story will become real for investors. Its easy to get pulled into the herd mentality and once the climate is right then this will be a strong growth story IMHO. The seeds of doubt are still there when companies still have a burn rate and when talk of production still seems like talk. I have met with Thomas Braun and its easy to share in the excitement surrounding this story. I went to do my due diligence and found there are a lot of sources to choose from. I have listed a few just so that you have something to look over. We have all been touched by cancer and I feel good reading about the goals and the milestones of Verisante Technology.

Verisante Media Link