
Originally Posted by
iyedouble
I'm looking for general insight. This is an excerpt I copied from a blogger commenting on the reasons for the performance of PPHM...
"...Good news is not the same as good product or services. A stock may spike up on good news, but it is not sustainable. Those you owned at .40 when it shot up to .90-1.00 on good news, should have sold. Those that bought at .90
hoping the 'good news' would carry the stock a little higher took a gamble - very different from an investment.
If .40-.50 is the appropriate value of the stock without further development or sale product, then that's your buy point. It doesn't mean this is a bad
company, but it's important to evaluate the value of a stock when the
hype of good news has faded. Hype and news is not sustainable - only
product is."
My question is one of "Due Diligence". What are the specific steps in going about due diligence? How does one determine the "appropriate value" of a stock? and lastly, where would one find a list of potentials ( drug stocks) to evaluate and choose from (because other than chiming in to some forum, I have no clue as to how to know of these companies)?