Originally Posted by IceMan2
It went up another 7%. Should I sell it now?
Or let it keep going
The reason it went up was because of some Cancer drug test success.
Will it fall now? Or should I keep it?
Anybody who is good with stocks?
1) look at the company's financials i.e. does it have alot of debt? Thats always a good indicator for me. Read public disclosures. Know the damn company in and out.
2) look at the sector. Not just the biotech sector but the particular sector the company falls into (i.e. ____ cancer pharmaceuticals, etc). How is that sector doing?
3) how does that sector perform in the particular overall cycle we are in in general?
4) look at bellweather companies in the sector, similar competitors if applicable, etc. Calculate per share profit margins (this should be a single number that you can compare with other companies) usually financials will have this set up for you already.
4) read some investing books. Its not always going to be your lucky day. Trust me.