mbus, think about it? Most of the posters on the board will be doing cartwheels if ATRS can trade at $5 again & they'll be telling everyone how smart they are to get that 10% gain. You know its the truth. Whats going to move it higher then that 10% gain? I don't see anything for another year so I don't mind just watching & then buying back in once I see how Otrexup sales are progressing & if the backlash against testosterone subsides.
I'm making 10% with my utilities & I don't have to deal with the hassles of holding the stock. In 6 months or a year then ATRS may look more attractive to me. I realize I run the risk of a buy-out or big news but I'm willing to risk it.
I am impressed - you are the first one to compare the expectation for return of ATRS to utility. Very realistic and with a strong contrast to most of the posters who expect miracles.
Your approach make a lot of sense - park large amount of money in a stock which will give you at least 10% return for a year and play high risk bets with the rest.
I try do the same, however I prefer to park my money in ATRS, you in utilities like SO.
- ATRS has no debt, SO - 23B debt, 116 dept to equity ratio
- ATRS does not depend from the interest rates, SO is strongly correlated to rates and bond performance - just compare the performance of SO to a good bond fund like PONDX in the last 1,2,5 and 10 years. PONDX is always outperforming SO in any time interval
- SO have 4.7% dividend yield , PONDX has 5.3%
In fact when you say that you prefer utility to ATRS, you actually are moving your money to bond like investment. Is it a good idea to buy bonds when the interest rate are expected to rise? I don't know, it is your call. But I prefer ATRS and I am willing to take the risk that the ATRS pps is stagnant for another year.