Investing in Biotechnology
September 11, 2007
"The most powerful force in the universe is compound interest"
 Albert Einstein

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I. The Basics of Investing...courtesy of The Motley Fool (we will go over this in class briefly; no homework required, but I recommend reading these articles!)

Step 1: Before you invest.....hate to say it, but settle those darn finances!
Step 2: Why invest your money ?

The Rule of 72: (important!)
The 9 deadly sins of investing - Direct from Investing Basics....

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? The Stock Market

Determining your investment style: (read about it)
Determining your investment style: (take the quiz! fun!)

Still interested, but don't know where to start? Read the 13 steps to Investing Foolishly

 

Recommended with caution: Sharebuilder.com

"Dollar-Based Investing: The stock market for the rest of us"

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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
What are some Marks of Great Companies? (applies more to the Non-biotech sector)

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For Rational Stock Analysis of a Biotech company: From The Basics of Biotech Investing

"Biotech companies worthy of investment should have the following:" (fill out the key criteria): We will do examples for REAL biotech companies in class.

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III. The ABCs of IPOs :

 

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

Compare: Amgen (Nasdaq: AMGN) Biogen (Nasdaq: BGEN) Genentech (NYSE: DNA) Medimmune (Nasdaq: MEDI)

With: Celera Genomics (NYSE: CRA) Novartis (Nasdaq: NVS) Human Genome Sciences (Nasdaq: HGSI) Millennium (Nasdaq: MLNM)

 

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

 

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

Project: How to be a Biotech Stock Billionaire

Objectives: 1. You willl 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.