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THREAD
Collection of biotech public markets wisdom from others. Mostly in tweet format. Will keep adding
1). Simplest ideas are best
2). Always think of "margin of safety"
3). Manage risk. Swap bad ideas for good ideas
4). Stories AND science matter
5). Many different styles
Collection of biotech public markets wisdom from others. Mostly in tweet format. Will keep adding
1). Simplest ideas are best
2). Always think of "margin of safety"
3). Manage risk. Swap bad ideas for good ideas
4). Stories AND science matter
5). Many different styles
1). "Simplest ideas are best"
Saved this @jposhaughnessy tweet. It's a good all-purpose guideline
Saw a scientist pen a $VSTM thesis ahead of AACR 2020 data fail this year. There were too many variables that had to go right, yet were mostly unknowable https://twitter.com/jposhaughnessy/status/1106623231249825792
Saved this @jposhaughnessy tweet. It's a good all-purpose guideline
Saw a scientist pen a $VSTM thesis ahead of AACR 2020 data fail this year. There were too many variables that had to go right, yet were mostly unknowable https://twitter.com/jposhaughnessy/status/1106623231249825792
2). "Always think of 'margin of safety'"
This is concept that certain investors (EcoR1) have borrowed from other sectors & applied to biotech
It's about avoiding co's that are close to being fully-valued & have few catalysts ahead. Instead, look for overlooked ones w catalysts
This is concept that certain investors (EcoR1) have borrowed from other sectors & applied to biotech
It's about avoiding co's that are close to being fully-valued & have few catalysts ahead. Instead, look for overlooked ones w catalysts
3). "Manage risk. Swap good ideas for bad ideas"
From @Sanctuary_Bio
See how he swapped $BLU for $UMRX and minimized downside?
You have to have really good sector knowledge to make these quick decisions https://twitter.com/Sanctuary_Bio/status/1281643254669164544
From @Sanctuary_Bio
See how he swapped $BLU for $UMRX and minimized downside?
You have to have really good sector knowledge to make these quick decisions https://twitter.com/Sanctuary_Bio/status/1281643254669164544
4). "Stories AND science matter"
From @juliaskripkaser
Great point about how science is important, but much of what makes a long idea "work" is how the story is communicated to non-technical investors
Ever notice how many bio fund PMs aren't scientists? https://twitter.com/juliaskripkaser/status/1193975549816905728
From @juliaskripkaser
Great point about how science is important, but much of what makes a long idea "work" is how the story is communicated to non-technical investors
Ever notice how many bio fund PMs aren't scientists? https://twitter.com/juliaskripkaser/status/1193975549816905728
5). "Many different biotech trading/investing styles"
From @brendan_49
He succinctly identifies three "archetypes" that can be emulated in this space
On "Quality", @buysidebio adds: "Itâs remarkable how many high quality stories slip thru cracks" https://twitter.com/brendan_49/status/1302262879828291591
From @brendan_49
He succinctly identifies three "archetypes" that can be emulated in this space
On "Quality", @buysidebio adds: "Itâs remarkable how many high quality stories slip thru cracks" https://twitter.com/brendan_49/status/1302262879828291591
THREAD CONT.
Biotech public markets wisdom from others
6). Only look forward
7). Sell side will miss many things
8). The "bottom" is often when you feel sick
9). Don't trade bio's into earnings
10). Don't need to hold into binaries
11). Watch for strength on follow-on offerings
Biotech public markets wisdom from others
6). Only look forward
7). Sell side will miss many things
8). The "bottom" is often when you feel sick
9). Don't trade bio's into earnings
10). Don't need to hold into binaries
11). Watch for strength on follow-on offerings
6). "Only look forward. Take your history with a stock out of the way"
Here, Perceptive talks about thinking in terms of probabilities that a stock goes higher/lower based on new info
Sort of #2 above rephrased. They ignore the past and constantly re-assess for margin of safety
Here, Perceptive talks about thinking in terms of probabilities that a stock goes higher/lower based on new info
Sort of #2 above rephrased. They ignore the past and constantly re-assess for margin of safety
7). "Sell side will miss many things"
Here is Perceptive explaining how sell side analysts are slow to react to new info. They have hard job churning out volumes of written materials
Also, they don't think in terms of "stock is going higher but not much" (margin of safety)
Here is Perceptive explaining how sell side analysts are slow to react to new info. They have hard job churning out volumes of written materials
Also, they don't think in terms of "stock is going higher but not much" (margin of safety)
8). "The 'bottom' is often when you feel sick"
From @AAMortazavi, who has a great sixth-sense
Remember how painful it was watching this innovative sector grind to a standstill before the wave of good news at the end of 2019?
Or in March 2020? https://twitter.com/AAMortazavi/status/1177299266404065283
From @AAMortazavi, who has a great sixth-sense
Remember how painful it was watching this innovative sector grind to a standstill before the wave of good news at the end of 2019?
Or in March 2020? https://twitter.com/AAMortazavi/status/1177299266404065283
9). "Don't trade bio's into earnings season"
From @lblegend33
This is pertinent to trading, not investing, but is evident based on his many years doing this https://twitter.com/lblegend33/status/1026799490496425985
From @lblegend33
This is pertinent to trading, not investing, but is evident based on his many years doing this https://twitter.com/lblegend33/status/1026799490496425985
10). "Don't need to hold into binaries"
From @Pharmdca
This is also pertinent to trading, not investing. It is a viable strategy to consistently sell before readouts https://twitter.com/Pharmdca/status/1191923929973002240
From @Pharmdca
This is also pertinent to trading, not investing. It is a viable strategy to consistently sell before readouts https://twitter.com/Pharmdca/status/1191923929973002240
11). "Watch for strength on follow-on offerings"
From @Biomaven
This is most pertinent to investing, not trading. If the price appreciates after a follow-on (a dilution event), that is a indicator there is strong demand in the long-term https://twitter.com/Biomaven/status/1304059681208401920
From @Biomaven
This is most pertinent to investing, not trading. If the price appreciates after a follow-on (a dilution event), that is a indicator there is strong demand in the long-term https://twitter.com/Biomaven/status/1304059681208401920
