Answers - Finance

I must claim my place as a successful stock investor since I have made huge profits. How? By not investing a single penny, and investing with my instincts!

Well, this (technical) analysis ste

According to USFDA, a combination product is one composed of any combination of a drug and device; biological product and device; drug and biological product

ms from the fact that my elder brother (an Engineering grad and a post grad in Business Management) has invested a lot and has lost a lot. Since I didn't have any money to invest, naturally I

; or drug, device, and biological product and fixed dose combination would include two or more combinations of drug.

Examples of combination products may in

profited with the absence of loss. This part of the story happened when the markets were down in the dumps.

Now cut to a later date when I had some money and I invested them into the first st

lude drug-coated devices, drugs packaged with delivery devices in medical kits, and drugs and devices packaged separately but intended to be used together.

ocks that came to my mind without troubling anybody with any analysis. Luckily the stocks happened to be HDFC, Satyam and LICHFL. And the rest they say is history.

Hey, I'm not asking you to

here is enormous increase in the number of combination products entering the market in the recent years. Combination products have proven advantages but fixe

ollow my style. You may not be that lucky after all.

Let's take a look at the fundamentals of stocks.

When you buy a share of a company you become a shareholder in that company. Shares are a

d dose combinations are still in the process of convincing regulatory authority on their advantages over the single ingredient formulations.

Combination pro

lso known as Equities. Equities have the potential to increase in value over time. It also provides your portfolio with the growth necessary to reach your long term investment goals. Research

ucts have become life saving products for the pharmaceutical companies who doesn’t have many innovative molecules in their product pipeline and have been inc

studies have proved that the equities have outperformed most other forms of investments in the long term.

This may be illustrated with the help of following examples:

a) Over a 15 year perio

easingly used in the product life cycle management. Even the companies having product patents are trying to extend their product life cycle through the combi

d between 1990 to 2005, Nifty has given an annualised return of 17%.

b) Mr. Raj invests in Nifty on January 1, 2000 (index value 1592.90).The Nifty value as of end December 2005 was 2836.55.

nation products and maximize the revenues. But the companies involved in this practice are overlooking that they are burdening the patients both economically

olding this investment over this period Jan 2000 to Dec 2005 he gets a return of 78.07%. Investment in shares of ONGC Ltd for the same period gave a return of 465.86%, SBI 301.17% and Reliance

and physically. They need to rightly judge the benefits of the combination products and they have to even look at the risks involved when combining the produ

281.42%

Therefore, Equities are considered the most challenging and the rewarding, when compared to other investment options. Research studies have proved that investments in some shares wit

ts. Some of the combination products were well accepted by physicians while others suffered. Companies involved in development of combination products are fi

h a longer tenure of investment have yielded far superior returns than any other investment.

What precautions must one take before investing in the stock markets? Here are some useful pointer

ding difficulty in defining their combination products and facing various challenges from selecting a combination to marketing it.

Following aspects would a

s to bear in mind before you invest in the markets:

All investments carry risk of some kind. Investors should always know the risk that they are taking and invest in a manner that matches the

dd to the challenges in developing combination products:

Which markets to tap where the combination products can do fairly well?
Which combination prod

r risk tolerance. Do not be misled by market rumours, luring advertisement or 'hot tips' of the day. Take informed decisions by studying the fundamentals of the company. Find out the busin

cts are meaningful and rational?
Which therapeutic categories to select?
Which Combinations can address unmet needs of the patients?
Do combin

ess the company is into, its future prospects, quality of management, past track record etc. Sources of knowing about a company are through annual reports, economic magazines, databases avai

tions increase the patient compliance?
What would be the developing cost?
How to tackle the risks encountered during combination product developmen

lable with vendors or your financial advisor. If your financial advisor or broker advises you to invest in a company you have never heard of, be cautious. Spend some time checking out about

t?

As combination products don't fit into the traditional categories of drugs, medical devices, or biological products, the USFDA is in the process of devel

the company before investing. Do not be attracted by announcements of fantastic results/news reports, about a company. Do your own research before investing in any stock. Do not be attract

ping new procedures for reviewing their safety, efficacy and quality.

Professional from academic institutions, pharmaceutical industries, health care indust

d to stocks based on what an internet website promotes, unless you have done adequate study of the company. Investing in very low priced stocks or what are known as penny stocks does not gua

y and representatives from various regulatory agencies are working out to design the regulatory requirements for manufacture and sale of combination products

rantee high returns. Be cautious about stocks which show a sudden spurt in price or trading activity.

Any advise or tip that claims that there are huge returns expected, especially for acti

.

As there is an increasing trend of the combination products companies manufacturing such products should be able to tackle the problems involved in the de

ng quickly, may be risky and may to lead to losing some, most, or all of your money.

Though direct stocks have the ability to give the best returns, it takes time and effort to be able to get

elopment. They need to be wiser in analyzing the market trends and the regulatory requirements.

Companies that provide selfless information through particip

the best out of it. The trouble is that we consider investment to be rocket science. Which, it is not. The irony is that even when the investing rules look so simple, it's hard to follow them

tion in industry events and feedback to regulatory authorities would be able to face the challenges and will be successful in developing combination products

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Depending on who you talk to, positioning is a marketing phrase that has many different meanings to many different marketers. In this article we look at the strategic rules that apply to positioning.

To start pulling in traffic a great strategy to use is to place links on web directories, this will build the one way links that you need. Posting links on web directories draws website users.

If you own a truck wash business or you are a salesperson for a truck washing company it behooves you to understand the trucking industry backwards and forwards. It is important that you do a lot of cold calling and you never miss anybody in the Yellow Pages who owns the trucking company or a fleet of vehicles.

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Answers - The Fundamentals of Stocks

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