Tag: biotech

Why I Bought Sangamo Therapeutics!

ericmilton

I’ve decided that once a month, I will talk about a company that I am a partner with.

I will cover who the company is, why I bought the stock, and where the stock could go from here.

I will tell you my position size, as well as my current profit or loss.

It’s one thing for me to blog about why I am so pro-investing.  It’s quite another thing to show you that I “eat my own cooking”!

So…without further ado, let’s get started.

Who: Sangamo Therapeutics (NASDAQ: SGMO)

What they do: Sangamo Therapeutics is a clinical stage biotechnology company.

The company is focused on translating science into genomic therapies that transform patients’ lives using the company’s platform technologies in genome editing, gene therapy, gene regulation and cell therapy. T

The company has clinical and preclinical programs in development.  They have partnered certain programs with biopharmaceutical companies to expedite clinical and commercial development.

Why I bought Sangamo: Sangamo is a turnaround story with some incredible technology.

Over the last nine years, they basically had two promising clinical programs that died.  The technology was promising, but the leadership wasn’t.

A few years ago, they hired a new CEO…and things started to turn around quickly!  They’ve restarted all their programs, and have captured three very important programs: genome editing, gene therapy, and cell editing.

You may have heard of a very exciting and controversial gene editing technique called CRISPR.  CRISPR has yet to be tested in a human in the United States.  Sangamo has its own gene editing technology – called zinc finger – that’s been tested in hundreds of patients.

They have a very deep pipeline of drugs for a small company – some very exciting partnerships with Gilead Sciences, and two partnerships with Pfizer.

Where Is the stock going?

On September 5, 2018, Sangamo will be reporting results on safety for the first in-human clinical trial using their zinc finger technique for gene editing.

This data read out will be absolutely huge, and could propel the stock from a current price of $13.50 to $40 literally overnight.

On the other hand, the stock could drop 50% if the data is not favorable.

Sangamo has results for about five different clinical trials coming out over the next 18 months.

My current holding:

Number of shares I own: 255

Return to date: -41%

Total investment: $6000

Current value: $3557.25

As you know if you follow my blog, every investment I make is with a long-term mentality.  My intention is to hold Sangamo for at least 10 years, and see what happens.

I hope this information has been helpful and will help you gain insight into how to look at investing.

Remember: check out my guide, The Stock Market is For Everyone, or my service, the Wealthy Joe Investment Club, if you need help getting started with investing.

Until next time!

 

My book, The Stock Market is For Everyone, is a short guide for the beginning, inexperienced investor that is easy to understand and can be put into action immediately.

Click here to be taken to its Amazon page.

(Disclosure: As a participant in the Amazon Services LLC Associates Program, I earn a small commission on each sale generated through these links.)

 

The Biotechnology Boom!

ericmilton

If you’ve read any of my posts in the past, you know that I’m a big believer in investing in artificial intelligence as a way to build wealth.  Another sector that I’m ultra-bullish on is biotechnology.

Now, biotechnology has the potential for great rewards, but it does come with significantly more risk.  It’s just the nature of partnering with these companies.  However, I think you should consider adding biotech companies to your watch list.  Here’s why.

During an interview last year, Bill Gates was asked what he would be interested in pursuing if he were enrolled in college today.  He said that the three most exciting areas are artificial intelligence, biosciences, and alternative energy.

I will admit that this is not the main reason I like biotechnology, but it’s a great place to start.

The reasons I like it are many.

Biotechnology has been around for about 35 years and is just now starting to hit its stride.  We are on the precipice of groundbreaking innovations in areas like gene editing,  CAR T-cells, and immunology.  People are living longer, healthier lives; innovations in biotechnology are a major reason for this.

Another factor that is enormous is the demographic tailwind that is the baby boom generation.  There are 70 million baby boomers.  They have wealth, and will live many years after they retire.  These 70 million people will demand drugs and medical innovations that improve the quality of their lives.

Let me give you a real-life example of how powerfully demographics can play in a trend.  When Home Depot went public in 1981, it was around the time the middle class in this country was starting to thrive.  The oldest baby boomer was around 32, and that’s around the time you purchase a house and start a family.  As people started feeling wealthier, they started spending.

Imagine 50 percent of baby boomers buying a home.  That’s 35 million people.  This trend was an absolute boon for Home Depot and its early investors – so much so that a $5000 investment in 1981 is worth a staggering $45,000,000 today!  Yes, you read that right – 45 million from a $5000 investment!

I think biotechnology is looking at the same tsunami of demand that will send companies’ shares into the stratosphere!

I will talk about various companies you may want to consider in an upcoming post.  Until next time, Joes!

 

My book, The Stock Market is For Everyone, is a short guide for the beginning, inexperienced investor that is easy to understand and can be put into action immediately.

Click here to be taken to its Amazon page.

(Disclosure: As a participant in the Amazon Services LLC Associates Program, I earn a small commission on each sale generated through these links.)