An investment idea....

Gofirstclass · Dec 3, 2020

Right now there are a handful of companies working on developing a vaccine for COVID. The first company to go through the hearing process on 12/10 is Pfizer (PFE). A week after that Moderna (MRNA) will go through that process.

There are a few other companies right on their heels to get vaccines to market.

So my thought is to buy some shares of ALL the companies currently in the vaccine manufacturing process. So let's say that you invest a couple of grand in each of the companies currently in the production process.

If you buy shares of 5 or 6 companies and only 1/2 or 1/3 of the companies really hit it big and the others you invest in only give you moderate returns, you've done well overall.

Your thoughts?

Third Edition · Dec 3, 2020

I like that thinking. I researched this quite a bit. Initially invested in a few. Doubled my money on some early on, and now have whittled it down to INO. Their vaccine is INO-4800. I'm out out of the others and am into INO in at $7 since March or so. It's gone up and down, and is a bit over $12.00 today. I like INO-4800 because it has very few if any side effects. It is also stable at room temperature, unlike others that need extreme refrigeration. INO is a DNA vaccine. They're scientists and a small company. Their PR is dismal. They have other products, too, that look promising. Good luck to you whatever you choose. Unlikely to go wrong.

northern · Dec 3, 2020

When the auto industry was in trouble. Equal purchases of each resulted in two being worthless and on doing well.

Stee6043 · Dec 3, 2020

I think you might be 6 weeks too late. Check out the stock price for the companies that are in the running for approvals. Big increases in November. The could still head upward...unless they don't get approved

I'm not sure this is even remotely possible but I wonder about downside risk if someones vaccine turns out the inneffective. Or worse yet, kills a few people. Stock prices may react pretty quickly to that kind of news.

I'll stick with investing in companies that make the test equipment. It's pretty safe for the operators, rarely makes people sick and is probably going to be in wicked high demand for a while yet...

Nater Potater · Dec 3, 2020

Gofirstclass said:
So my thought is to buy some shares of ALL the companies currently in the vaccine manufacturing process.

Already did that back in April, plus Disney (DE), as people stuck at home tend to watch a LOT more cable. So far, so good...

Third Edition · Dec 3, 2020

Pharma can be VERY volatile.

Golfman25 · Dec 3, 2020

I think a lot of the vaccine reaction is priced in already. The big question will be is this a one time thing or will be a new stream of revenue thru yearly vaccinations.

boatman37 · Dec 3, 2020

I'm an avid trader and the saying around here is buy the rumor sell the news. Usually there is a runup leading up to an event then a selloff just before or right after. I avoid all biotechs because of their volatility. I know lots of traders that buy AAPL about a month before an event (earnings or new phone release events) and sell a day or so before the event.

Not saying your idea won't work but not something I would try.

sbw1 · Dec 3, 2020

If you invested 2,000 in the handful of companies that make vaccines that would be an investment of 10,000. Let's say you doubled your money (unlikely); that would mean you made 10,000 on your original investment. After taxes, not a lot of money. Then consider the work these companies are doing has already been priced into what you are paying so you are likely buying their stock at a premium. So, even less money to be made. You make money in the market by being diversified, and being in for a long time vs. market timing individual stocks. Good that you are thinking about investing, but probably not a good investment strategy. A better strategy would be to dollar cost average your purchases consistently for a long period of time and buy low cost index funds that mirror a broader market. Balance your equity to fixed income instruments mix in a way that makes sense for your age. (The older you are the fewer equity index funds you buy, and the more fixed income you buy), and then hold them. This works out really well if you start doing this when you are 21 and retire at 65 or later.

Golfman25 · Dec 3, 2020

Boatman vs Sbw film at 11:00.

SeaNile · Dec 3, 2020

TSLA ? I missed out on that one. Damn. However, it's never too late.
SWAV medical device company poised for a fantastic run on upcoming FDA approval.

Gofirstclass · Dec 3, 2020

SeaNile said:
TSLA ? I missed out on that one. Damn. However, it's never too late..

I bought some TSLA a while back. Just looked it a minute ago and I'm up almost $2K just from today's trading. My shares of Moderna are up about a grand today. I'll take those any day.

sbw, you're almost right on the $10K investment. Mine is in a Roth IRA so no taxes on any of the gains. Your investment strategy ideas are spot on and the vaccine stocks I bought, I picked them up a while back so I've been in them awhile.

For those of you who are leery of a stock price plummeting, use stop prices below the current price, and as the current price goes up, move your stop prices up.

sbw1 · Dec 3, 2020

Gofirstclass said:
I bought some TSLA a while back. Just looked it a minute ago and I'm up almost $2K just from today's trading. My shares of Moderna are up about a grand today. I'll take those any day.

sbw, you're almost right on the $10K investment. Mine is in a Roth IRA so no taxes on any of the gains. Your investment strategy ideas are spot on and the vaccine stocks I bought, I picked them up a while back so I've been in them awhile.

For those of you who are leery of a stock price plummeting, use stop prices below the current price, and as the current price goes up, move your stop prices up.

I own vaccine companies as well, but they are part of a diversified portfolio and represent a small percentage of the overall sector. I plan on overweighting the healthcare sector in 2021 a bit but not in any extreme way. Will still be fully diversified sector wise and with companies within the sectors. Also globally spread out in Europe, Asia except Japan, and some developing countries. Have been buying large cap Japanese company funds for about 4 years and seeing good returns there.

SeaNile · Dec 3, 2020

Bummed my 401k is via employer/Fidelity and I can only pick available funds and not individual stocks.

boatman37 · Dec 3, 2020

I'm a short term trader and only trade options but TSLA isn't done. Watch for a pullback then look for a reversal back to the upside. Sounds simple but timing is everything. Today I sold QCOM calls that I bought Monday and made 42% and Tuesday I bought INTC and sold today for a 50% win. If you look at the INTC monthly chart it had an inside month in November. Tuesday it broke up over the high of November so I got in. Technically my target would be the high from October but that is a long way to go so I sold today for 50%. BTW I bought January expirations for both of those trades. I paid 5.70 for QCOM and sold for 8.10 (in options that is $570 and $810 per contract). INTC I paid 1.67 and sold for 2.52.

Tuesday I made $60 on AMZN in 2 minutes and today I made $95 on AMZN in about 30 seconds....lol. So my long term strategies aren't as solid. 3 AMZN trades in the last 7 days and none were longer than 2 minutes

SeaNile · Dec 3, 2020

You are talking to a basic buy low sell high guy. Clueless about margin, options, puts, calls, etc.

Carpediem44DB · Dec 3, 2020

It seams that the Vaccine companies are really going to do well with this one. Governments buying hundreds of millions of doses at god knows what price per dose. With operation warp speed and the streamlined time frame in the approval process, the costs to pharma have to be quite reduced not to mention the protections afforded pharma from litigation arising from its use. We are well diversified across the healthcare sector already so haven't considered betting on one or the other stocks to capitalize on the pandemic specifically.
Carpe Diem

boatman37 · Dec 3, 2020

SeaNile said:
You are talking to a basic buy low sell high guy. Clueless about margin, options, puts, calls, etc.

lol. yeah I'm pretty deep into this stuff. Been at it since about 2013. Hoping to do it full time in the next 4 or 5 years. My step-son is just getting started and said a friend of his that trades full time made $65,000 on NIO yesterday. I'm still trading small sizes until I get more consistent. I started a new system several months ago and am just getting proficient at it. I trade charts only. I don't need to know what the company is or what they do. The system focuses on reversals on the chart. The candles are numbered 1, 2, or 3. There cannot be any other candle, has to be one of those. My favorite setup is a 3 followed by a 1 (similar to the INTC I mentioned). Anyway, I also joined this guy on twitter that started a $1000 to $100,000 challenge. We started about 45 days ago with $1000 and we are at $3270 now but we did take our initial $1000 back out so we are at $2270 now. It only takes something like 18 20% winners in a row to get to $100,000 but it is high risk because we have to go all in every trade. Once in we automatically set our target at 20%. We are 4 for 4 so far. We will see what happens...lol. It's all options trades. Currently we are not holding anything in that challenge but I think he will be getting back into AAPL soon with it. Last trade I had about $2000 of AAPL calls and sold all but 1.

I love trading and chart reading. One of my favorite hobbies...lol. I recently built a new 32GB 6 core computer with 4 23" monitors for trading. I also have 3 monitors for my day job so I have 7 monitors on my desk...lol

Here is a shot of my monitors and a couple of trades from awhile back that I made. The one shows my entry on the first arrow and exit on the 2nd arrow. The other is annotated

Creekwood · Dec 4, 2020

Gofirstclass said:
Right now there are a handful of companies working on developing a vaccine for COVID. The first company to go through the hearing process on 12/10 is Pfizer (PFE). A week after that Moderna (MRNA) will go through that process.

There are a few other companies right on their heels to get vaccines to market.

So my thought is to buy some shares of ALL the companies currently in the vaccine manufacturing process. So let's say that you invest a couple of grand in each of the companies currently in the production process.

If you buy shares of 5 or 6 companies and only 1/2 or 1/3 of the companies really hit it big and the others you invest in only give you moderate returns, you've done well overall.

Your thoughts?

Too late? They have all run up in price to reflect the possibility. I am thinking that the opportunity is to short the ones that are overbought or the ones that are too far behind.

370Dancer · Dec 4, 2020

Nater Potater said:
Already did that back in April, plus Disney (DE), as people stuck at home tend to watch a LOT more cable. So far, so good...

That was my Roku play. They just added Airplay to the O/S, even for older units, so all Apple TV streamers get thrown in the trash, now.
Roku: in at $30, $290 as we speak. Didn't buy enough, unfortunately. May be the new Apple stock.

An investment idea....

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