Stock Update: Sangamo Therapeutics (NASDAQ: SGMO)

I want to share my personal investing experience with you in this blog as often as I can.

Around the second quarter of 2018, I purchased 252 shares of Sangamo Therapeutics (NASDAQ: SGMO) at around $23.

Initially, I looked like a genius! The stock ran to $26 soon after I bought it.

The next 12 months, however, would be sheer agony…

Sangamo is a gene therapy company with very promising technology. That’s the reason I made the investment in the first place.

They are working on their own gene editing technology called zinc finger. If successful, zinc finger will be revolutionary technology.

Since I purchased the stock, it has fallen 60%. The company has had 3 data readouts in the last 10 months, and each has been disappointing.

When biotechnology companies want to bring a new drug into market, they have three trials they must pass. The process of getting a drug successfully approved by the FDA can take years.

One of the reasons I’ve remained long Sangamo is that this year in particular is scheduled to be filled with data readouts by the company. I only need one trial to be successful!

On Monday, Sangamo put out a press release that they would be having a conference call on Tuesday morning at 10:00 a.m. The company and its partner, Pfizer announced results from a clinical trial to treat hemophilia A – and they were exceptional. The stock closed up 28% on the day to around $12.50.

I’m still down 46%. But remember, I was down 60%. I think Sangamo may be turning the corner.

This is part of owning stocks.

I will keep you posted.

 

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 the image of the book at left 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.)

Advertisements

Sangamo Sang The Blues!

sangamo stock crashed
Sangamo Therapeutics (NASDAQ: SGMO) was down 30% today.  My own loss: 67%.  Ouch.

Today was a rough day in the market.

Overall, the averages were down, because the US and China are not as close to a trade deal as we thought.

Then there was Sangamo Therapeutics (NASDAQ: SGMO), which I posted about yesterday.  Sangamo was down 30% today.

The company is working on a cutting edge technology called gene editing.  Although, as I said yesterday, they are the only company in the US that has successfully edited a gene in a human, in reporting their trial results today they did not prove unequivocally that there was a significant medical benefit.

As a result the stock was punished…pushing my loss to 67%.  Yes, you read that right.

Sangamo still has about seven additional opportunities to redeem itself.  But there are no guarantees.

And I knew that going in.  I wrote a piece on speculative investments recently, of which Sangamo is one.  These kinds of investments are not for those with weak stomachs.

You should start out investing in successful companies before you graduate to a speculative stock.

I will keep you posted on Sangamo as the year goes on.

Disclaimer/Disclosure Statement: Information in this article is not intended to be a recommendation to invest in any stock.  Rather, it is presented for readers’ education and consideration when making their own investment decisions.  The author is long SGMO.

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 the image of the book at left 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.)