Today we turn away from Europe and QE2 and talk about something I find far more interesting, if not as immediate. I have been talking and emailing with Pat Cox of Breakthrough Technology Alerts a lot lately. There is just so much happening in the biotech space and, as long-time readers know, that is my hobby and the one place I actually buy stocks in this market.
There is just so much misinformation (and sometimes borderline lies by short-sellers). I asked Pat to give us an update on the state of the stem-cell world, and in typical Pat fashion he gives us a lot more to think about. Indeed, Moore’s Law is changing more than just computers.
Now, the only way to really do this right is to actually mention a few specific stocks. Please note a few things. These are very small, highly speculative stocks. I own some of them and will likely buy more in the future. But I fully expect that when we have a bear market these stocks could trade down. I am buying these for a very long hold, in hopes their technologies actually prove out. There are no guarantees. I can almost guarantee that some of them will go to zero, for all sorts of reasons (like a new competitor coming out of left field – things change so fast, as Pat points out). I say that in order to tell you NOT to pile into these or chase the price. Please. These are not value stocks. Most burn through money. You are buying into intellectual property and management, not today’s cash flow, and there is no need to do it today. Spend some time. Learn the stories and the industry. Get a strategy that works for you. Diversify. Etc. Some are my personal investments, and this is not a recommendation. You should always consult your financial advisors.
Pat’s letter is rather pricey ($2,000), so my deal with Agora is that I have to offer a link to their letter promo. As I have noted, not my style of promotion, but I am a HUGE fan of Pat Cox. If you are at all interested in new technology and biotech, he is my go-to guy. And he is a great place to start your education and read his back issues and ponder the world to come. For the next two weeks, my readers get a reduced price of $895. The link is:
Now, let’s think about just one of the reasons life is going to change so much over the next ten years.
Your sitting under the Tuscan sun analyst,
John Mauldin, Editor
Outside the Box
Biotech and the Unintended Consequences of Moore's Law
Transistor density doubles roughly every two years, as Moore's law attests. Information technology therefore advances exponentially. You don't even have to know what a transistor is to feel the impact of this extraordinary phenomenon. Mobile computing is an example. From new phone features and tablets to the bandwidth that connects them to the cloud, the innovation is dizzying.…