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Five Good Reasons to Buy Biotech Stocks Now
Right now biotech stocks are hot, and this means you can get in before these stocks take off and go higher. Biotech stocks are stocks for companies like the drug companies and medical supply and device companies, to name just a few. There are five good reasons to buy these stocks now instead of waiting, and there are also ways to determine which biotech stocks are a good fit in your portfolio.
The first reason to buy biotech stock now is to get in on the bottom level, before these stocks increase in price and market share. Biotech stock is very hot right now because of many new developments in the medical and drug field. The human genome has been mapped, and many companies and scientists are working on drugs and therapies that are genetically targeted or altered. This may eventually lead to whole new levels of treatments, and the release of news concerning these treatments will cause the biotech stock to rise substantially.
The second reason to buy biotech stocks now is because these stocks are a good stock to hold, because eventually this industry is going to grow in popularity and demand. This means the stock could split, doubling your investment. With all of the baby boomers that are aging currently in America, the demand for medical equipment and new drugs and therapies to combat the symptoms and diseases of aging are going to become more popular and in demand. This means growth and earnings for biotech companies.
A third reason to buy biotech stocks right now is the same reason you should buy any quality stock right now. With market volatility, all stocks have been going up and down frequently, sometimes on a daily basis. Buying these stocks when they are near rock bottom means getting a great deal, and a terrific discount on high quality stocks that may be a very wise financial move on your part. Eventually the market will stabilize again, and biotech stocks will see growth. When this happens you will be glad you bought biotech stocks when they were low.
Another reason that biotech stocks are hot and should be purchased concerns the fact that many of these stocks are undervalued at the moment. This means that you can get the stock for a fraction of the true value. Make sure the underlying company has a good management team, and that the stock performance is at least par with other biotech stocks on the market. This will allow you to evaluate whether a particular biotech stock is a good fit in your investment portfolio or not.
A terrific opportunity for a great investment and significant return is the last reason that now is the time to buy biotech stocks. New drugs are being tested in clinical trials for diseases like Alzheimers disease, diabetes, and many other drugs. The company that can develop and market these drugs stands to see a large increase in earnings. If you own stock in this company, you stand to profit just as well. Advances in modern medicine have opened the door to biotech stocks that may not represent much right now, but can be a smart financial move in the future when the company produces a new drug or treatment option.
Biotech stocks are a new frontier for many investors, but these stocks show the most potential for the future. Choose biostocks that fit well with the diversity of your investment portfolio, and do your research to ensure that the stocks being considered are quality, but buy biostocks now before you lose out on a terrific opportunity.
The information supplied in this article is not to be considered as medical advice and is for educational purposes only.
|Biotechnology Stocks24 Nov 2008|