Occasionally people ask me for book recommendations regarding biotechnology investing. I always recommend the following two books:
Edit: Since the original publication of these recommendations, a new book has been published. The Pharmagellan Guide to Biotech Forecasting and Valuation is my new #1 recommendation.
Back to the original post.....
The first book I always recommend:
I used to give this book to interns on their first day. It has two parts, the first is a concise and non-technical introduction to the space. My interns could typically read that in an hour or two. The second part is an introduction to option trading in biotechs, and is appropriate for those who want to step their trading up beyond straight equity.
The second book:
Have you ever been invested in a biotech company and seen it go down after it's drug was approved by the FDA? If you go to Yahoo message boards afterword, you will see investors saying "I just don't get it" and blaming short sellers. In reality, unsophisticated investors don't get valuation. Most likely, the stock was overvalued going into the FDA approval, and now its getting back to reality. This book with teach you rNPV modeling of pipelines, so you are not surprised again.
Full disclosure: I recently became a contributor at Chimera Research Group. The author of Biotech Traders Handbook, Tony Pelz, is a founder of Chimera. However, I have been recommending the book for years.
A short selling only portfolio manager recommended these two book to me:
When Stocks Crash Nicely: The Finer Art of Short Sellin by Kathryn F. Staley
Short Selling: Strategies, Risks, and Rewards by Frank J. Fabozzi
LA Times: Sebastian Mallaby, a veteran of the Washington Post and The Economist, came out this summer with what has been described as the definitive study of the hedge-fund industry, carrying the evocative title “More Money Than God.”
Here he is interviewed on the insider trading scandal that is sweeping the hedge fund industry.
This is the personal blog of Emory Redd.
This blog is not investment advice. This is not a solicitation to invest. Don't take candy from strangers.
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