The inherent volatility of biotech shares makes biotech investing among the most lucrative ways to invest in the stock market. At the same time, that volatility also makes it one of the most dangerous. Often, biotech stocks are powered by sector- and stock-specific factors unrelated to the overall economy. Price drivers like FDA approvals, drug sales, product announcements, test results, and even government regulations are the catalysts behind biotech share prices. #-ad_banner-#However, this volatility serves me well, because I love buying weakness in the stock market. Not just any weakness, but a weakness that is tied to a short-term situation… Read More
The inherent volatility of biotech shares makes biotech investing among the most lucrative ways to invest in the stock market. At the same time, that volatility also makes it one of the most dangerous. Often, biotech stocks are powered by sector- and stock-specific factors unrelated to the overall economy. Price drivers like FDA approvals, drug sales, product announcements, test results, and even government regulations are the catalysts behind biotech share prices. #-ad_banner-#However, this volatility serves me well, because I love buying weakness in the stock market. Not just any weakness, but a weakness that is tied to a short-term situation rather than an inherent flaw in the company. When a short-term negative situation is combined with the inherent volatility of a biotech company on the cutting edge of its market, I see an opportunity… Ophthotech (Nasdaq: OPHT) fits the above description to a tee. Let’s take a closer look. Ophthotech describes itself as a biopharmaceutical company focusing on the development of novel therapeutics to manage diseases of the rear of the eye. They specialize in developing creative therapies for age-related macular degeneration (AMD). The company’s most promising product candidate, Fovista anti-platelet-derived growth factor (anti-PDGF) therapy, is in Phase 3 clinical… Read More