Hey Y'all! I just wanted to tell you about a personal research project that I have embarked on. About a week ago I decided that I was going to take on a long research project in the field of Biotech. For quite some time I have been interested in biotech. I am very interested in Physics and science in general, and personally believe that there will be an amazing amount of advancements in the the treatment of previously untreatable diseases over the next couple decades. My goal is to learn and attempt to figure out where the next amazing advancement in medicine will come from.
I have decided to focus on Nanocap and Microcap biotech stocks for a few reasons. Firstly, Nanocap/ microcap companies are the smallest publicly traded companies. Since the market caps for these companies are between $1-100 million, any finds could have the potential to be incredibly successful investments. Secondly, since the companies market cap and share price are so small, they are under covered and go unnoticed. By analyzing them, I could be able to find some underappreciated hidden gems. Finally, since these companies are so small, they have a greater incentive to innovate. The CEO's of large cap biotech companies are already making billions of dollars, so they don't need to continue to innovate to be rewarded; however the CEO's of these small companies aren't making very much money, and will only be rewarded if their companies have success.
With this hypothesis, I will analyze all of the nanocap and microcap companies I can find. I will look for share price, market cap, what the company is focusing on, what phase of clinical trials they are in, how good their data is, how far out their commercial success could be, and how unmet their need is. Through all of this I will begin to cut out the companies with poor data or that are too early in development and focus on the ones that are closer to commercialization. I will highlight companies that I find daily beginning this next week! :)
Thanks for reading and have a great day!
Hi Nick, I'm sorry I missed this great post! Some good criteria here, keep us posted.