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It is important to note that every smart investor wants to minimize risk while maximizing profit potential. Yet conventional investment theory tells us that in order to increase returns, you have t

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

o increase risk.

You may be surprised to find that this conventional wisdom is not always true.

When I was a professional stock trader, I made most of my profits from appreciation in my portfolio

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

Examples of combination products may in

, not in short term trading. In other words, I was a position trader. Any losses in my stock positions were taken out of my paycheck at the end of the month – in fact, I had to pay back any loss. I

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

f you are in this position, you desperately want to learn all the techniques to make large profits without risking much. I became an expert out of necessity. So while my trading account had virtual

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

y no losing months, my gains were as much as 300% per year.

In my stock picking, I first looked for stocks that were so cheap they could not go down. If they did go down, I was happy to buy more b

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

Combination pro

ecause at those prices, you could buy the whole company and sell off the assets for a profit.

From this group of “safe” stocks, you select the ones most likely to have large appreciation.

A stock

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

is cheap in my book if it sells below the liquidation value of its assets, and most cheap if it sells anywhere near the net amount of cash it has on hand. So the first two measures of value I look

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 for were book value per share and cash per share.

Book value is the value of the shareholders equity carried on the books of the company. Generally, since you are buying a share of stock, you wi

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

ll want to know the book value per share.

The one caveat to looking at book value is that companies often have intangible assets on the books, goodwill and the like. You have to take these intangi

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

ble assets with a grain of salt. The safest thing is to look for “tangible book value.”

Book value per share is often calculated for you in the various Internet financial stock search programs ava

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

lable.

The next indicator to look for is cash per share or working capital per share. Working capital is current assets minus current liabilities. These assets are near to cash or will generally b

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

Following aspects would a

e turned over in one year: receivables, inventory and the like.

To measure the health of working capital, divide current assets by current liabilities to get the “current ratio.” A current ratio o

dd to the challenges in developing combination products:

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

f two to one or better usually indicates a solid company. As long as the company does not have any long term debt, or at least none coming due in the near future, the company is solvent and should

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

be around for a while – little or no bankruptcy risk.

Next, we look for low price-earnings (P/E) ratios. In my opinion, buying high P/E stocks to chase growth companies is inviting real risk. If t

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

e company disappoints in earnings, not only will the stock drop from lower earnings, the P/E ratio will deflate as well, giving you a double hit.

OK, so you have found a company that is selling at

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

or below book value with a current ratio better than 2:1, and a low, low P/E. It may be that the stock will not go down, but will that stock go up?

Picking growing industries and growth companies

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

Professional from academic institutions, pharmaceutical industries, health care indust

is more than I can tell you here, but there are two simple things you can look for first: (1) Is the company buying its own stock, or has it bought its own stock at about this price, and (2) are t

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

e insiders making hefty purchases of their stock?

Next, you can look at the ratio of revenues or sales to market values or the dollar amount of sales per share. Generally speaking, the company wit

.

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

h a relatively high amount of sales per market value or sales will have more action on the upside. That company has more revenues to make profits from.

After you have narrowed the field using the

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

Companies that provide selfless information through particip

above techniques, there will be no substitute for intense homework about company prospects to find which of those cheap stocks that truly give you superior returns, what I call my “Home Run Stocks.

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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You can start attracting new clients faster than you think. Even if you have just hung your shingle at your door, you can begin now to postion yoursef as an expert in your field with these easy steps. Within 60 days or less, you can be a recognized authority in your field and have prospective clients knocking on your door.

Corporate entertainment offers its members the feel of something that they have never done or long forgotten. Corporate entertainment is now an extensively used term and it includes team building, sports hospitality, conferences, entertaining clients, and company fun days. For any business, it is important to gain new customers, keep and develop existing relationships or inspire or reward its workforce. Corporate entertainment events, a form of team building exercise, are a pleasant way by which communication skills and cooperative work abilities can be improved.

Owning a safe and placing it on some busy corridor with the door wide open is something that only a mad man would do. Or is it? In actual fact if you are reading this and you do not have adequate spyware protection, that is exactly what you have done to yourself.

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Answers - Stocks: Reduce Risk Yet Maximize Profits

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