Dear Investor:
Can you afford $10 a month to secure your retirement? Most people have nothing saved for retirement. And 2022 was an annus horribilis with both stocks and bonds plunging. The “60/40” retirement portfolio was massacred. What to do?
One strategy is to invest a small amount of money in a portfolio of stocks with huge potential upside – carefully selected biotechnology stocks. Yes, some drug development programs will fail. Some companies will have to sell stock to raise enough cash to get to the finish line. Some good drugs will get turned down by the FDA. Some approved drugs will struggle in the market.
BUT...some drugs will be spectacularly successful and change the way medicine is practiced. Some small biotechs will sign lucrative development deals with Big Pharma companies looking to fill their depleted pipelines. Some will be acquired for many multiples of your investment. Some will grow into large, independent drug companies.
And you know what? It doesn't matter what the Fed does. It doesn't matter who is President. It doesn't matter if the US is in a recession or not. It doesn't matter what Russia or China does next. It only matters that the drug works, gets approved, and sells.
Say you put $2,000 into a stock that goes from 50¢ a share to $10. The $2,000 turns into $40,000. Then you put the $40,000 into another stock that goes from 50¢ to $10. That turns the $40,000 into $800,000. You did it with two stocks, and never risked going negative more than $2,000.
But you took the very high risk that both stocks have to work in this parlay or you could lose everything. It is better to build a portfolio of several stocks that have 10x, 20x, or even 100x potential.
What if I told you there is a portfolio of 8 Biotech Moonshots where you can buy one share of each for about $10? I don't mean each stock costs less than $10. I mean buying one share of all 8 will cost you about $10. Wild, huh? But that's the opportunity the 2022 bear market has served up for you.
Let's look at what these Biotech Moonshots do, and why a portfolio of all 8 is pretty well balanced.
Company #1 - The best drug developer in the US runs your first company. They have two drugs in human trials. One is the best drug for many intractable blood cancers and is likely to be Fast Tracked for FDA approval. They'll announce several clinical milestones in 2023. With over $50 million in cash and no debt, they are funded into 2024. Stock price under $1.
Company #2 - The CEO of your second company is an MD with an MBA. Their product already is approved in the US and Europe. Their technology can spin off dozens of new products. Likely to be acquired in 2023. A penny stock.
Company #3 - Your third Moonshot is a late-stage company delivering an already-approved drug that gets people home from the hospital. Their pivotal Phase 3 trial completes enrollment early in 2023 with top-line results in the September quarter. I expect easy FDA approval. Over $10 million in cash and no debt. Stock price under $1.
Company #4 - Next-generation gene-editing technology from Stanford that is far ahead of the competition. Your company will report their first clinical data in mid-2023. Over $300 million in cash will carry them well into 2024.
Company #5 - DNA medicines experts with 5 clinical trials underway and more coming. Phase 3 data is due any day! Over $280 million in cash to carry them into 2025. Stock price under $2.
Company #6 - A leader in genetic testing with dozens of pharma partners. Goal: Be the Amazon of genetic testing. I think they'll do it, with Amazon-like returns on your investment. Almost $600 million of cash. Stock price under $2.
Company #7 - The very best replacement for Interleukin-2, an effective cancer drug with horrendous side effects. Your company's drug is just as effective with almost no side effects. Expect clinical data updates throughout 2023. $29 million in cash and no debt carries them through 2023 into mid-2024. Stock price under $1.
Company #8 - Your last Moonshot developed the first new antifungal drug in 20 years. Two FDA approvals already with more coming. Important clinical data coming in 2023, 2024, and 2025. Nearly $100 million in cash carries them through 2023 into mid-2024. Stock price under $2.
Add them all up and you can buy one share of every stock for a total of about $10. Can you set aside $10 a month to do that and dollar-cost average in? Or $10 a week? Perhaps you can do $100 a month for 10 shares of each. Or perhaps you'd rather divide your investment dollars equally among all 8 stocks. Those choices are up to you.
What I will do for you is follow all 8 closely, study their SEC filings, analyze their results, listen to their conference calls, and keep you completely updated on how each company is progressing, what to expect, and whether any have changed to Hold or Sell. Early Bird subscriptions are just $10 a month or $100 a year, and you keep that Early Bird rate forever. Just go to biotechmoonshots.substack.com, SIGN UP TODAY, and start investing!
As always, let’s get out there and MAKE it a great day!
Michael Murphy CFA
Founder & Editor
New World Investor
PS – In case you don't know me, I graduated with honors in economics from Harvard and I'm a Chartered Financial Analyst. I've written three books on smart investing, including the business bestseller Every Investor’s Guide to High-Tech Stocks and Mutual Funds and Survive The Great Inflation.
I began my career in the computer industry’s infancy, first as a COBOL programmer and mainframe systems analyst, then as a technology stock analyst for American Express Investment Management and Capital Research/American Funds. I was the CEO of two software companies.
For the last 35+ years, I've been an independent technology investment adviser, bringing professional research to individual investors through the California Technology Stock Letter, Technology Investing, and currently New World Investor. I provide a unique analysis of emerging MegaShifts (new technology trends and breakthroughs) that are still under the radar, and the companies best positioned to reap staggering rewards. Over the years, I've been a regular guest in the media with frequent appearances on CNBC, Fox Business, and CNNfn, and was often quoted in The Wall Street Journal, Barron’s, and Money.
Outside the stock market, I'm a Permaculture Design Consultant with a certificate in Agroecology from UC-Berkeley. I set the land speed record for Class I/E electric cars at the Bonneville Salt Flats in 1997, a record that stood for eight years. And I'm very happily married with four great kids.
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