Originally Posted by 22rowdy
That's what people said about this stock last September...
And, actually, it's not relatively safe. Holding thru trial results with an unhedged long or short bias is the exact opposite of "safe." It's more like "guessing" or "dangerous."
I don't really care what you do, but downplaying the risk because you're biased is just silly.
_I_ did not say that about CHTP last Sept nor was I holding CHTP last Sept. The current situation is vastly different than last September and shows a profound lack of understanding to suggest otherwise. It is a mistake to lump all drug trials and biotech stocks together and assume they have equal risk.
To those relatively new to biotechs, I would suggest those of you with the ability to do so, choose biotech plays by closely studying trial designs, preliminary data and the literature to identify those with the highest probability of success. Takes effort. Nothings free.
Once you have that down you'll also be in a much stronger position to play the technicals if thats your style. Everyone needs an edge. This type of approach can get you out ahead of the herd, and help you avoid being Feuerstein/Biomedreports sheeple. The billion dollar hedge funds etc hire science Ph.Ds to do biotech stock analysis. Why? Because it makes them money. Fundamentals do matter.
Can you lose money on CHTP? Absolutely. Not a sure thing. So diversify and minimize your risk of Gambler's infamous black swan events.
Full disclosure: I'm long CHTP. Have traded in and out over the last few months, but always had a core holding. I'm up over 75% on CHTP and hope the percentage goes much higher than that before we are done. Up around 200% on my biotechs since April. Still learning. Still tweaking.