Panning for Gold

Making money investing in the tech sector is not as easy as it may seem. While the mainstream media spends most of its time talking about the companies that have already become industry heavyweights, it spends very little time discussing those that have fallen by the wayside. Of course, as an investor you need to know which stocks are going to be the ones that are going to make it, and get in on them before it becomes obvious to everyone else.

That’s especially true with biotech stocks, which are even more volatile than the typical tech stock. The winners can explode in value almost overnight, while the losers can disappear before you even know they were here. That’s why our biotech expert, Dr. Joe Duarte, uses this month’s In Focus article to explain the proprietary stock rating system he employs to identify portfolio recommendations. Unlike large-cap stocks which have a fairly predictable revenue curve which can be accurately measured by our BiQ rating system, an entirely different approach is necessary to score these much smaller and more event-driven businesses.

Speaking of event-driven, Rob DeFrancesco feels that is exactly what may drive up the price of Citrix Systems based on recent comments from one of the company’s biggest shareholders. In our Sector Spotlight article Rob explains why it may be time for Citrix to go through the process of “reverse innogration” to narrow down its product line.

Just as we use customized metrics to inform our large-cap and small-cap portfolios, Rob DeFrancesco also uses his own unique approach to evaluating mid-cap stocks for inclusion in the Next Wave Portfolio. In today’s Portfolio Update article he has a new addition to his portfolio, and if it performs anything like most of his other recommendations you will want to get in on this one soon before it takes off!