Happy New Year! It’s Time to Buy and Sell!
First, a Happy New Year to all! I hope your responsible merry-making made you merry… and that it didn’t force you to marry Mary the next month. But perhaps what I hope most of all is that this will be the end of your suffering at the hands of bad puns for the year.
Mr Beerver had an absolutely fabulous 2013. He studied hard at university. He worked hard at his job. He drank a bit. His investments worked out spectacularly well by any measure.
He’s up 64% on his investment in 2013 vs. the S&P’s 32% and the benchmark of 5%. That’s cool. It’s also due to one single stock so it’s NOT much to write home about yet.
I also want to talk about that ONE stock today and do some housekeeping in Mr Beerver’s financial house.
ISCO is a great company. No doubt about it. Their parthogenetic stem cells are simply awesome AND they have current annual sales of about 4 million$ from products people use TODAY! Their sales are also growing at a pace of 20%, which is mind-blowingly awesome.
The one cloud on their horizon is the ongoing patent trial in the EU. That should get resolved later this month or early next month. Unfortunately, I don’t expect the result to be good for ISCO. That’s not a business-ending problem simply because ALL stem-cell companies have the same problem in the Euro-zone: Their cells are unpatentable.
However, I DO expect a large drop in price as a result of the verdict. So take out half your money now if you’ve already plunked it in OR get ready to invest in ISCO after the negative verdict when share price comes right back down to 0.14 next month.
Mr Beerver will take out half his investment at 0.23$. That’s 924$ coming out of the initial 1200$ he plunked in. So now he’s only risking 3 months of savings in this company instead of 12 months. This should help Mr Beerver sleep well through the market ups-and-downs of 2014.
Now having done this brings up a lot of cash he can use to further his investments. In addition, his hard work in January has gotten him 100$ of savings to invest.
To balance out his portfolio a bit, he’ll buy 56 shares of Yamana Gold at 9.10$.
He’ll also buy another biotech. This time it’ll be 104 shares of Nanoviricides at 4.91$.
I’ll discuss both of these moves in detail next week. Until then, be well and may all of your beer in 2014 be to your liking!