smart or stupid investment?

Question

i have a primitive idea for investment
I am looking for a company thats about to introduce a new drug to the market & buy some stocks & so the stocks prices will go high once the new drug is introduced.
is this a smart or a stupid idea?

Answer 1

It can be a good idea. Look for companies that have several drugs in trial and do not have any drugs yet marketable. Then you have a chance for a big score. There are some companies in this category that might make excellent investments.

Answer 2

I think the thing to realize is that by the time you hear about it, the potential new drug isn't a secret, and everyone evaluating the stock is incorporating the available info into their decisions whether to buy or sell the stock. People investing in the company (or the people advising them) should know the drug, its potential market value, and the test results to date. So the results aren't going to catch the market by surprise...in all likelihood, if the drug is about to come to market, the share price is already sky high. So there isn't really any edge in knowing that they are about to come out with a new drug (without any other data) because the share price of the stock probably takes into account the market's opinion of the likelihood of the drug getting approval, and its prospects if it does. Where sometimes there is an edge is if you follow an industry closely, and you can say that say, the drug is likely to sell more/less than consensus...or it is going to have more/less chance of approval...in other words, you have an insight the market doesn't have. However, those edges aren't easy to come by.

Answer 3

It can be a smart idea and a stupid idea. If the new drug brings in some tort action which will bankrupt the company then it is a stupid idea. If the drug is good enough then it is a smart idea. Finding companies that produce good drugs and then keep it safe will be time consuming and costly. In the mean time if you study your investment properly where, when, how, what etc; can bring in equaly likely returns without much cost, especially you can use the internet to do the research on the investments nowadays.

Answer 4

Other people have already had this idea and it's very risky. Usually, when companies are about to introduce a new drug, it hasn't been FDA approved yet. You can buy the stock and if the drug does get approved, get a pretty good return. However, if the FDA approval goes through, you'll lose money.

Answer 5

It's a smart investment becase I pesonally always keep a little cash in reserves for a potential big gain. It helped me when I bought Burger King stock at 13 and sold at 20!!

By the way, what company are you referring to? If you tell everyone more people buy the stock, driving the price up so you are doing yourself a favor by telling everyone!!!

Answer 6

speculative.

Since the introduction of a new drug is subject to FDA approval in the US ... there is a period where the new drug introduction is public knowledge ... and reflected in the market prices for the stock

And as recently noted ... sometimes tens or hundreds of millions are invested to bring a drug to market ... only to find that the drug is ineffective or unsafe ... leaving the "tidy bowl man" to "row his boat really fast".

So (IMO) ... potential way to win big or lose big ... but requires information that may or may not be readily available ...

Answer 7

Neither stupid nor clever yet extra possibly early. The identifying to purchase organisation in a merger often underperforms for a while as analysts cope with the pros and cons and the two companies initiate the extensive merger technique. How properly the technique is going and how earnings are affected will make sure the inventory circulate. The quite great question is correct to the entire financial sector. various possibility, various possibility.