To Biotech and Beyond!

Long time readers of Smart Tech Investor know that we believe the ruthlessly evolutionary process of innogration will continue to push information technology into new directions that will make our lives better in ways we cannot yet imagine. We are already seeing it occur in the health care field, with biotech companies both innovating and integrating to create medical treatments for a wide range of deadly diseases. But it doesn’t end there.

In this month’s In Focus article Dr. Joe Duarte takes a look at one such example of technology being used to create healthier foods. Technology has long been used to produce larger and healthier crops, and is now making the natural expansion into the food products derived from those ingredients. I don’t know about you, but I’m looking forward to the day somebody can figure out how to make a healthy french fry that actually tastes good!

For our Sector Spotlight piece this month, Rob DeFrancesco discusses recent advancements in Virtual Reality. We believe this is going to be a huge growth market in the years to come, with useful applications that will extend far beyond video gaming. Who knows, perhaps one day instead of going on vacation, the vacation will come to us? 

Of course, all of these wonderful innovations will require increasing reliance on cloud computing, so Rob also has new buy recommendation in his Next Wave Portfolio Update. As we pivot into the next major long term economic cycle, the stock market is searching for a new set of companies to lead it higher and we believe it is companies such as these that will do it.

Stock Talk

Jim Abraham

Jim Abraham

I hear robotics is the future-which stocks shall we invest in?

Jim Pearce

Jim Pearce

Good question. We are currently researching robotics stocks and expect to publish our recommendations on that subject in one of the upcoming issues for reasons explained in this week’s upcoming issue of STI. Not sure exactly which issue will have it, but we will be adding some robotics stocks to our portfolio later this year.

Stu B

Stuart Bruins

Jim, do you have someone who proofreads each issue? A number of errors in today’s issue just in the article by Benjamin Shepherd

Jim Pearce

Jim Pearce

We do. In addition, I read Ben’s article before posting it but must have missed them. I’ll take another look at it. Thank you for letting us know.

Glenn H

Guest User

where do we start taking some money off the table regarding ARGS?…it has gone parabolic

Jim Pearce

Jim Pearce

Good question. If the interim test results (due to be released in a few weeks) are positive then we see no reason why the stock can’t go higher. There is an enormous amount of money at stake, and the companies that get there first could explode in value. That said, you could put a stop order beneath the current price to protect most of your gain in case the news is not good, that way you can continue to ride it up if the news is good (and keep raising the stop price along with it).

Glenn H

Guest User

thank you….where would you put the stops though since the stock has a history of a wide range of trading…oh,would you just put in a straight sell stop or a sell stop limit?

Jim Pearce

Jim Pearce

The potential problem with a stop limit is if the stock drops fast it may blow through your limit price and never get executed, thereby defeating the purpose of having it there in the first place. From a short term perspective there is no support level to reference for a stop price, but from an intermediate term (2 year) perspective there is support around $8.75.

Glenn H

Guest User

thank you….although a straight stop limit becomes a mkt order and then you get the next offer…but, per your advice I’ll go with the straight mkt sell stop…..

Jim Pearce

Jim Pearce

That may depend on your broker, so for other readers considering doing the same make sure you are clear what your broker means by that term. For example, here is how Scottrade (where I have an account) defines it:

Stop Limit Order

(Note: The term “stop limit order” is applied only when this type of order involves options. If you’re placing a stock or ETF order, the name for this order type becomes “stop-limit-on-quote order.” )

This is a type of order that combines the features of stop order with those of a limit order.

A stop-limit order will be executed at a specified price (or better) after a given stop price has been reached. Once the stop price is reached by the market, the stop-limit order becomes a limit order to buy (or sell) at the limit price or better. This order is then handled as defined by a limit order.

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