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Investing
Email Kathy


Investing in Biotechnology
September 17, 2009
"The most powerful force in the universe is compound interest"
 Albert Einstein

Hi Class: For tonight: Definitely do the READINGS (at right) and otherwise just click on and read the lisks below that are interesting to you. Have fun! Don't invest any money!

 

I. The Basics of Investing...courtesy of The Motley Fool

 

Step 1: Before you invest.....hate to say it, but settle those darn finances!

a) 9 Ways to Pay it Back"

b) How Rich Friends make you feel Poor.

c) Save, Save. Don't Splurge on a Piggy Bank, a Tin Can Will Do.

Step 2: Why invest your money ?

Patience, time, and The miracle of compound interest:

The Rule of 72:

 

Step 3: Money - now that you have it, where do you put it?

Step 4: How (might) you get returns better than CDs and money markets?

a) The Stock Market

b) The Five Biggest Stock Market Myths: [READING]

c) Determining your investment style: Take the Risk Tolerance Quiz (FUN!)

d) Recommended with caution: Sharebuilder.com - "Dollar-Based Investing" for the rest of us

II. The Basics of Biotech Investing: How do "Real Investors" decide to put their money in a company? They go through a process called Rational Stock Analysis. looking at various parameters that provide clues to the overall health of the company.

 

Quoted from The Motley Fool: MARKS OF GREAT COMPANIES
HOMEWORK!! What are some marks of great companies??











For Rational Stock Analysis of a Biotech company: From The Basics of Biotech Investing (note: Quite old...from 2000!)

 

HOMEWORK! "Biotech companies worthy of investment should have the following:

















III. The ABCs of IPOs: Going Public.

Google!

 

 

IV. A few notable pipelines: Would you invest in these companies?

Compare:
Amgen (Nasdaq: AMGN)
Biogen (Nasdaq: BGEN)
Genentech (NYSE: DNA)
Novartis (Nasdaq: NVS)
 With:
Celera (NYSE: CRA)
Human Genome Sciences (Nasdaq: HGSI)
Millennium (Nasdaq: MLNM)
Medimmune (Nasdaq: MEDI)

Are you holding on to a Biotech Zombie?!?!?

Are these 5 the Biotech Dream Stocks??

 

 

V. Now, are you ready to invest $10,000?

Project: How to be a Biotech Stock Billionaire

Objectives:

1. You will not be tested on your knowledge of compound interest, stocks, bonds, or other assets! That material is all there to educate you about investing...hopefully you will be motivated to get a jump start on your financial future $$$$$!
2. The Rule of 72 is a very important concept. Ask Albert Einstein.
3. Please know the characteristics of companies worth your investment dollar, as provided by The Fool.
4. Be able to explain what an IPO is and the benefits and costs to a company that goes public.