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Investing in Biotech
Biotech investing is fraught with pitfalls. One of the best discussions of what a sophisticated investor should look for is Adam Feuerstein's article, "How to Review Biotech Clinical Data." He exposes some of the data trickery used by Introgen in a recent scientific presentation. Major red flags! If you don't want to look at actual data, you'll need to rely on third parties like Adam Feuerstein to tell you who's playing fair and who's not. He does mention Celgene (CELG) as one of the good guys, and I fully concur. They are my favorite biotech with an incredible pipeline, excellent patents, and strong technology. I also like Sangamo Bioseciences (SGMO) with their zinc-finger proteins that I see as revolutionary.
I gave up on GTCB recently (sold when they briefly rose above $1, breaking even) and took a small position on ENZ because I think the sell-off over a patent problem was overdone. But Celgene is my major position and a great play for the future.
In other areas, I think this is a good time to add OESX (Orion Energy Systems) to your portfolio. I recently toured the factory and had a wonderful interview with the CEO that I'll be writing about in the future, and I'm solidly impressed. Get it under $12, if you can.
Also a good time to get into Dennison Mines (DNN), Endeavor Silver (EXK), Sterling Mines (SRLM.ob), Ceradyne (CRDN), refiners like FTO and MRO, and the oil services company, Flotec (FTK). All cheap!!