Because The World Can't Wait

Be sure to have plenty of diversification in your portfolio so when you have stocks that are not performing well, like INO, you can continue to grow your portfolio. There are plenty of stocks and many ways to grow your portfolio but, if you insist on smaller biotechs look for companies that can give you an edge as an investor.

Some of the parameters that can give you an edge, that I personally look for include at least some or all of the following: An FDA approved drug and/or one additional drug that is already commercialized, is earning revenue, have been approved in the EU as well as US, have other trials in PHIII, have a partner in the global commercialization (EU) or have a management team that is respected by Wall Street and their scientific peers. This is not a creed to which I always subscribe to but, as an investor in this space for nearly 20 years, it has taught me that there are some investments that look extraordinary based on their novel approach, therefore I may take an entry as I did with INO.

There are dozens and dozens of these small cap, revenue generating companies that meet at least one of these criteria. Otherwise, know that investing in a biotech that has yet to have an approved product is a lengthy process, decades or more. I have been in INO since 2008 and taken this round trip from the .70 cent range to it's current SP. But, it hasn't been a complete loss with many wins during catalysts. I play the catalysts and hold only when a product is finally approved and thus meets my own criteria.

Here is a list of my current biotech holdings, as an example of how I'm spread out, based on my criteria. Also, my biotech holdings only make up 10% of my entire wealth as "momma didn't raise an idiot": AGEN, AQST, ASND, AVDL, EYEN, GMDA, HIMS, IMGN, INO, KPTI, MCRB, MNKD, ORIC, ORTX, PLSE, RCKT, RIGL, SENS, XNCR.Do not fall in love with a company! It's irresistible and will cause you to make mistakes. Believe me.

So, who else takes this approach? What other criteria or suggestions for investing in this space are used by members?