Term Investment Tactics That A Capital Market Analyst

U.S. based companies hold rights to most of the world’s rights on new medicines and holds thousands of new products currently being developed. As of 2012, the industry helps support almost 3.4 million jobs in the U.S. economy. It is also one of the most heavily R&D based industries in the world. In the United States, the environment for pharmaceuticals is much friendlier than other countries around the world in terms of pricing ability and regulations. Both the Pharmaceutical and Biotechnology industries have experienced significant growth in the past year with year-over-year increases of 13.02% and 34.69% respectively. It is an even more striking when looking at the past five years considering both have beat out the S&P 500 with pharmaceuticals increasing an additional 31.44% and the biotechnology sector besting an astonishing 269.3% more return than the

The pharmaceutical drug business is simply that: a business. Most of what goes on within these massive companies is purely to make a profit off of people’s purchases of the drugs they produce and sell. Angell titles her first chapter “The $200 Billion Colossus” referring to the drug business and the amount of money that it generates. That amount of money is not even fathomable to the average person because of how large of a number 200 billion is. The fact that there is an industry that generates so much revenue year

High R&D: For a pharmaceutical company, high R&D expenditure is a necessity to both survive and hold a monopoly in the market.

prescription drugs, which will play a big role in the increase of profits for pharmaceutical

The pharmaceutical industry includes companies that research, develop, market or distribute generic and branded drugs. The industry expanded during the 1980’s and drugs to treat heart disease and AIDS were prominent. Consumer demand for nutritional supplements and alternative medicine increased during the 1990’s with the Internet facilitating direct purchases of drugs. Advertising for direct consumption of pharmaceutical drugs became more prominent; pharmaceutical companies were criticized for over medicating personality or social problems.

I really want go to Texas A&M because it has a really good business school and other people in my family have gone. The required SAT score to get in is a combined score of at least 1300. You need a composite ACT score of at least 30 and an average GPA of 3.55. The business school at Texas A&M is called Mays Business School and they have a really good BBA (Bachelor of Business Administration) program. I’m planning on going to college for four years and then I might go for a couple more years if I feel like I need to. I will take finance classes at Mays Business School at texas A&M in order to achieve my goal of becoming a stockbroker. One year at Texas A&M is $22,470. If I go for four years it will cost $89,880. If I decide to go for two more years to get my Master of Business Administration, the total cost would be $134,820.

Today pharmaceutical industry is worth 300 billion dollars and controls a majority of the money market. It is an industry that today is in very close ties with the FDA. The FDA has lost face because it is now to closely linked with big pharmaceutical companies. It is more beneficial and profitable for ‘Big Pharma’ to have more unhealthy people because that would mean more drug sales. Mercola, Joseph, Dr. "Exposing the Truth Behind FDA Approval and Guidance."

According to the CAPM model:R_i=α+βR_m+ε, α represent the abnormal return gained by the portfolio. If the market is efficiency, the α has to be zero.

The company is so large that no one drug can lift it from its current sales doldrums. In addition, the company was once highly attractive to investors, but its recent stock price fell to 1997 lows. This may put pressure on the company to attempt acquisitions at a time when the company is ill-equipped to integrate a new company into its organization, and it is engaged in a cost-cutting program at a time when it may need to invest even more in research and development (McTigue Pierce, 2005).

Another important feature of the pharmaceutical industry was the fact in that in many countries it was

Drug portfolio management is one of the most important determinants of long-term prosperity of research-oriented pharmaceutical companies.

This currently mean, that the companies have adopted a very risky way of growth since this strategy, as before mentioned, is about developing new products for new markets. This is risky due to lack of knowledge about markets and manufacturing. The ways in which the companies have pursued this strategy is by M&A’s, which only adds more risk, since many factors may affect the mergers & acquisition negatively. Furthermore did we find out that in general the pharmaceutical companies will more or less always work in risky environments, which are also those that generate the highest amounts of possible revenue, but also those that are in the highest risk for failure. Normally what is seen, as the highest failure in the pharmaceutical industry is the lack of FDA approval of pharmaceuticals, very few drugs are granted permission to be marketed each

Our approach is an active security selection with passive asset allocation. We invest heavily in common stocks, but vary our holdings to include companies of all sizes and industry groups. We seek to achieve sufficient diversification by abstaining from investing more than 5% of the total assets in a single security unless it has significant upside potential, and we make an exception for ETFs and index funds as they represent a basket of securities. Our main goal is to identify and invest in common stocks with high potential for both short- and long-term capital appreciation. Our secondary goal is to invest in common stocks with steady income. When potential for rewards are high, we also enter into derivative

So the investor will invest 32.58860806% of the investment budget in the risky asset and 67.41139194% in the risk-free asset.

Outside players have the ability to influence much of the decision-making that goes on both inside and outside of the firm. One of the main agents that do this are the security analysts. This player is very important to the operation of the firm because they influence how outside investors view the firm in terms of leadership as well as liquidity and other financial measures. Even though security analysts are known for their intensive research into investment vehicles for their clients they provide many in-depth services that investment advisors and others who watch and monitor the stock exchanges may not be able to receive. For instance, security analysts provide analysis of key data from inside the firm as well as projections for upcoming quarterly and yearly reports so that clients and prospective clients can make informed investment decisions. Security analysts make up a very important piece of the financial market by providing accurate and precise analysis, so active and passive investors including investment banks can make informed decisions. Without security analysts it would be much more difficult, maybe even nearly impossible, for individual investors and boutique investment firms to evaluate data and other metrics to make informed investment decisions because of their lack of manpower and clout.