The pharmaceutical sector is well known as one of the most volatile and lucrative stock market sectors. It can also be the most emotionally rewarding, as you invest in companies that are creating innovative, life-saving treatments for various illnesses. #-ad_banner-#But with high returns come high risk, and the pharmaceutical sector’s reputation as one of the riskiest is well deserved. In fact, pharma’s inherent volatility can make it downright dangerous for investors. Share prices can quickly gain 100% on the back of the positive news or lose 50% or more in a short time when negative news hits the wire. The… Read More
The pharmaceutical sector is well known as one of the most volatile and lucrative stock market sectors. It can also be the most emotionally rewarding, as you invest in companies that are creating innovative, life-saving treatments for various illnesses. #-ad_banner-#But with high returns come high risk, and the pharmaceutical sector’s reputation as one of the riskiest is well deserved. In fact, pharma’s inherent volatility can make it downright dangerous for investors. Share prices can quickly gain 100% on the back of the positive news or lose 50% or more in a short time when negative news hits the wire. The key to success in pharmaceutical investing is to locate firms that are on the cutting edge of novel research and have multiple products in their pipeline. Ideally, you also want a company whose shares have recently taken a hit due to a short-term negative event that caused an investor overreaction. With these points in mind, I have located an ideal pharmaceutical stock that has been recently been pushed down, creating massive upside potential. The company, Alnylam (Nasdaq: ALNY), was founded in 2002 with a mandate to advance RNA interference (RNAi) as an entirely new class of medicines. RNAi is a… Read More