Good reply JK...
I looked at the company after the OP... Just because I love this stuff.
So to use them as an example... MannKind (MNKD).
Over the long term chart - they're DOWN 27% -- and that's AFTER a 58% run up in the stock prior to getting the FDA approval for the newest drug.
No dividend. And the stock was at $20 in '07 then dropped like a rock to $3 and less for about 5 years. A couple short term blips to the $10 range when I would ASSume some news about stage this or that trials were favorable. Then sold off right back to the bottom.
Here's the investing 102.
I can't possibly spend enough time to be up to date on the latest greatest drug trial - or who has a competing product in the pipeline... Not to mention I hate Yo-Yo stocks. Rich one day broke the next. No dividend. No knowledge. No investment.
There's no doubt that if you can stay on top of this stuff - there's HUGE money to be made... There's also huge money to be lost when your picks fail to get approval - or get sued because somebody did something which is blamed on the drug or treatment. I'm not being negative -- I'm just being truthful for what happens to 9 out of 10 investments like this.
If you're in the business -- up to date -- understand the MARKET or the product that is ultimately brought to market... Then maybe you can make some money in these.
But this is INVESTING 102... not "let's pick the next hot stock to lose money on"... and I would think that unless a guy is playing with several hundred thousand dollars -- he should steer clear of the "next hot thing".
I play with some of this kind of stuff... but I don't discuss it in this thread because it's just not appropriate. That would need to be a different thread titled --- What rich guys do with their play money -- or something along those lines... Or Stock market gambling how to lose money overnight. :>) Maybe "I went to bed rich and woke up broke"? I kinda like that one. HAHAHAHAHAHAHA
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