Monthly Archives: January 2013
I have been following SGMO for quite a bit now. Its clinical stage product is still in phase II and its president have been travelling too much to conferences. While it’s had its voices heard, it is getting in dangerous zone in its inflating prices. Collapse will mean worse for normal investors than hedge funds, because judging on their behaviors recently, hedge funds is manipulating stock prices beyond the actual worth of the companies. This is however, making the market more predictable in a sense.
Hedge funds are aiming for a short-term gain, so they will pull out at only the most profitable moment.
The expectation for this market now is that the success of a company will eventually attract the hedge fund back.
As a result, I have learnt something recently. In a stock market today, or maybe this is true from the beginning, that what you are planning against are the funds, organizations, investment firms, not individuals in general.
As a result, trying to outwit those who know the market well, with experience, is not a rational move. Short term gains from stocks are quite unrealistic. For individuals, aiming for growth is more realistic and more profitable.
Quite a few stocks are profitable in the long-term (1 year to 3 year range). For example:
CDXS is one of those, it has revenues, it needs cash now, but its stock price is really cheap. The difference of CDXS is that it has a solid product. And my personal belief is that it will make a market share, and any successful introduction of its product will be enough to push up its stock price.
You just have to search for those companies in this really cheap market.