Wednesday, February 4, 2015

Biotech Investing Pointer: A clue the biotech sector may be frothy

There's been a number of articles and commentary regarding the meteoric rise of the biotech index over these past several years. The Nasdaq Biotech Index HAS MORE THAN DOUBLED over the past two years. It's been a great run for us biotech investors but there's a clue that the leaders within the industry may think the run is near its end...everyone and their brother is raising money! In the last few weeks countless biotech's have raised capital including a number that I personally own including Tonix (TNXP), Bind (BIND), Immunomedics (IMMU), and Ziopharm (ZIOP)....and these raises were in the last few days. Positive catalysts will continue to provide upside in the biotech sector but I've started moving out of positions without near term catalysts due to the clues that the overall sector may be frothy and overpriced. Continue to do your homework and nothing but good biotech investment wishes to my readers! Shane

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