The brutal race among biotech companies to finish off the pandemic and earn serious capital is still trendy. However, several investors hesitate in buying their stocks as some of them might not gain due to scientists’ failure, most of the time.
Gilead and Moderna have stocks that grew significantly in recent months making huge fortunes for visionary investors. Could Biomerica cheer its investors up by coming up with a successful vaccine for COVID-19 treatment? Time will show. There is no magic ball that tells the future.
Cash burning machine
Many young healthcare and biotech firms use funds from external sources to make their revenues lively. So, the same situation happens to Biomerica. Over $1 million revenue can’t increase the earnings unless major job cutting and admin expenses disappear within a quarter.
For the smart investor, income statement and balance sheet normally come as secondary factors when stock change mostly depends on scientists’ innovations.