Over the past several years I have bought into every sector after forensically going over the company's business plan and financials and along the road I won and lost. The funny thing is I can only remember one story that I lost money on in the health care space and even that company is now up 3000%.
I wrote down every name and symbol I could think of and methodically went through them and checked the most recent closing price and was amazed. Some I bought under a dime are now over $10 a share. Some 20 cent stocks were now $2-$3 a share and the list goes on and on. The biggest missed opportunity was a 5 cent stock that is about to hit $20 a share right now.
That's not to say I haven't had 10 baggers and 30 baggers but never in the medical space. I was always worried about trials and lag time and stock drift. I made money on the flip but had I gone long on 2 or 3 of those past stocks I would likely be sitting on my own private island right now writing my memoirs. For the very same reason I like tech stocks, the health care stocks can take on a life of their own and are easily embraced by institutional and retail investors. I also find that medical stocks are put together with a more refined team that often support their own stocks in the market and with financing.
Something draws me to these stories and as a habit I set an exit plan in place the moment I have filled my position. Then when the exit time comes I normally don't look back and move onto something else. I don't know anyone with a crystal ball that can predict the outcome, but of any sector that seems constant it would have to be medical. Oil & Gas always swings with gold and the almighty dollar. But there standing firm is the push to have better medical services and drugs for society because after all who doesn't want to live a longer and healthier life?
I bought into Antibe Therapeutics Inc some time in January after the company had suspended trials on it's lead drug ATB-346 due to some issues patients were having at higher doses. The market fear drove the price down but I could still see the panic in the market so I waited it out until it hit about 4 cents. The term catching a falling knife was thrown around in the chat rooms but I thought the best time to buy is when there is blood in the streets. The bleeding seemed over and I suspected some of the sell-off was short selling as well. The whole time there was no insider selling and that didn't surprise me based on the company executive involved here. I thought to myself, these guys are in for the long haul and their reputations are on the line. If anyone can pull this from the fire it would be them.
On 2015-03-11 the company announced they had resumed the development of the lead drug in a short and sweet news release. http://www.stockwatch.com/News/Item.aspx?bid=Z-C%3aATE-2258239&symbol=ATE®ion=C Once again I read through the details and then looked at what they weren't saying in the news release. I don't think they want to tip their hand at what will come next. I certainly don't think that the CEO who was quick to suspend trials for fear of peoples health would suddenly wave his hands in the air and announce they are back on track to develop this drug unless he has a plan.
Something else that I found very encouraging and exciting was the fact that they immediately released a comment on twitter https://twitter.com/AntibeThera
They didn't say they were continuing to reevaluate or that they were taking time to recalculate or analyze, no the bold statement read:
"We have resumed the development of our lead drug, ATB-346".
The question remains, what is the next step and what are the "additional validating studies prior to continuing with a full phase 2 program".
Does this mean that they want to see if 700mgs is safe for everyone?
Is 600mgs? 500mgs? The issue came from a patient at 1500mgs and a less significant dose issue from a patient at 750mgs.
Since they have already indicated they are moving to stage 2 then the only reason I can see for the additional study is to secure the requirements for the financial assistance needed to fund stage 2.
CONTENT POSTED ON THIS BLOG DOES NOT CONSTITUTE A BUY OR SELL RECOMMENDATION. MANY OF THE COMPANIES PROFILED HERE I AM NOT INVESTED IN AND DO NOT INTEND TO INVEST IN. THESE ARE MERELY MY THOUGHTS ON MARKET CONDITIONS AND STOCK VALUATIONS. INVESTING IN THE STOCK MARKET CAN BE VERY RISKY AND YOU SHOULD ALWAYS CONSULT AN INVESTMENT PROFESSIONAL BEFORE MAKING ANY DECISIONS. ULTIMATELY YOU ARE RESPONSIBLE FOR CONDUCTING YOUR OWN DUE DILIGENCE AND PROTECTING YOUR MONEY.
Disclosure: I am invested in Antibe Therapeutics Inc ATE.V http://www.antibethera.com/s/Home.asp