When the Goal is Reaching into the Future, Pessimists Have No Place on the Ship
The revolution in the biotech sector has proven to be moving fast towards reaching goals that were impossible to imagine a couple of years ago that they could be attainable. This is not true only regarding lay investors, or desperate patients, but also regarding the most professional clinicians, researchers and health authorities. Indeed, the FDA and the NIH and their analogous health authorities around the world have never imagined coming the faster than the speed of light biotechnology revolutionary achievements that are rapidly becoming fait accompli. This time, all the prophets, with no exception, were taken by surprise.
Recently, we posted an article under “Today’s Highlights” at the Prohost Biotech website with an introduction that addressed the biotech sector’s unprecedented revolution. We wrote, “We are living an historic biological revolution.” Unfortunately, the undeniably outstanding news has yet to penetrate the ears of many stockholders. They are still falling to the stock market traders’ games and critics’ and bloggers’ magnifications or fabrications of negative news. Many investors end up selling their picked highly scientific biotech firms motivated by fear caused by the negative campaigns. Later on, when their eyes would fall on the new prices of the stocks they abandoned, they regret selling treasures at penny prices thanks to their gullibility.”
We added, “It is fact that biotechnology and genetic engineering scientists have already crossed the border separating our present and future treatment of diseases. Thanks to the gigantic acceleration in the speed of the genome sequencing, researchers around the world are generating unheard of amounts of information about the pathways of cancers and chronic, progressive, devastating diseases. Thanks to the unmatched improvement in the art of drug design, discovery, and development, scientists have become capable of using the secrets acquired through the improved genome analysis to create breakthrough treatments and cures to sicknesses believed to be hopeless cases. Thanks to the enhancement of adeno-associated virus vectors, scientists have brought the future into the present by putting in the clinic a gene therapy that prevents blindness. And, thanks to the discovery and usage of novel gene editing techniques, scientists are now working towards improving agriculture, creating living treatments, and aiming at curing genetic-derived hereditary and acquired diseases.
It is an undeniable fact that the biotech industry is generating billions of dollars to date. Knowing that this is just the beginning, not the end of the revolution, we expect the biotech sector’s achievements to keep stunning the public, while its revenues keep mounting. We expect them to match the speed of the discovery of the disease-causing genes, and the rapidly elucidating impacts of these discoveries on the creation of targeted treatments.”
Why reiterate what we elaborated on only a few days ago?
Because shorting the biotech sector’s unmatched evolution at the time when the stock market is on its way towards reaching an undreamed of historical record high, makes no sense.
We attributed the continued efforts to demean the biotech sector’s great achievements to a robotic system where the robots are fed irrelevant rules of thumb aimed at exerting automatic pressure and volatility on the biotech sector. Among these weird rules of thumb are Sell on good news, and evaluate development-stage firms based on their incomes, knowing in fact that these firms will generate no income until they have approved and marketed products. There exist a lot of these rules of thumb and a lot of actions, which make it difficult for many investors in the sector to keep their stocks until they succeed in putting breakthrough products on the market.
This is a little out of a lot of reasons expected to cause a temporary sluggishness in the performance of the biotech sector at a time when the market is extremely bullish
Bloggers and sell-side investors find it easier to accuse creative and scientifically solid firms of incompetence when the accused firms experience some problems, for example, delays in launching their approved drugs. Naïve investors believe these bloggers, regardless of the absence of any proof about their accusations. Such thrown right and left accusations would cause selloffs in stocks of the wrongly accused company, which should not happen.
In this regard, we are posting an article tomorrow morning about Portola (PTLA) in our Today’s Highlights column, trying to analyze and fairly evaluate this firm.
Attacking the gene therapy sector of the biotech industry and devastating the stocks of the firms specialized in gene therapy and gene editing and gene anything seemed bizarre to us, especially that these attacks occurred at the time when the FDA and the National Institute of Health (NIH) have both praised gene therapy and expected it to become a game changers in the treatment of chronic progressive devastating diseases and life-threatening diseases.
To be Continued
Investors should not be deliberately made to miss unique opportunities that are now more existing in the biotech sector than have ever been. Many stocks are expected to double and triple and more. Analysts know well about these firms and, we believe, investors in the biotech sector must reach the same information themselves. Many investors have generated a lot of profit in the biotech sector since its inception. They were able to succeed only after learning how to ignore irrelevant and unfounded pessimistic, or optimistic claims, which are not accompanied by legitimate proofs. Misleading bloggers rely on investors’ short memories in order to succeed. ======================================================================================
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