Attention all of you ONVO genius'. Perhaps those of you who are "nervous"...might consider investing in some Pfizer (PFE) as a HEDGE with your organovo investment.
I hear the "pump and dump" intelligencia..........but Pfizer has committed capital for how long?...... Conclusion:Pfizer's money talks............pump and dumper's.......take a walk..........or maybe take a different look.
Look at Pfizer's chart..........reverse head and shoulders. This would indicate a BUY on Pfizer (PFE) and with a company who has a PE of 20.17 and a market cap of 191.5 BILLION and a dividend yield of 3.69%...........a 50-50 investment equates to about a 1.7% yield with either unlimited growth from ONVO adding to pfizer's bottom line AND organovo as a separate GROWTH stock......... or a long term..........slow growth return on investment to cover losses in case ONVO takes the ultimate #$%$.
The amount of money that Pfizer is investing in ONVO is "chump change" to them........ but all companies will take a chance after not only "due diligence" but spending sums of $$$ to determine the likelihood and probability of return on investment.
A company that invests TWICE.........thinks they are TWICE as likely to see something in the long term even if it may take TWICE as long........
The chance of ONVO doubling, tripling, etc in value is far far greater than the chance of a big player doing the same. We are in ONVO speculating on this possibility. It may even be acquired, likely at a 100% premium, which just cant happen for a big player. Granted this stock is no place for a large chunk of any portfolio, but it certainly has a place in the play-money part. Would you have preferred to be in MSFT or in IBM back in 1985 ? The same arguments as you state can be made, and the MSFT holders became multi-millionaires while the IBM holders followed the broader market.
Also you are clearly confused about the word "hedge". You might mean "diversification" but your thoughts don't really imply this either.
PFE would not be considered a hedge, it would be considered as diversification. Of course ONVO is speculative at this point but diversifying between many good stocks would soften any loss that you have. ONVO should only be a small portion of any portfolio. I have no idea where this stock goes but feel worth a shot for long term hold with small amount of money. I bought 30K for around 2.10 and sold 20K today for 3.15. I still own 10K for almost a zero cost basis. need no hedge. good luck
The 5-year comparison chart between PFE and PJP is striking. Almost no growth in PFE. Almost 100% growth in PJP. I'm not generally an ETF fan, but this one comparison makes a good argument for the PJP ETF. Excuse me. I digress.