GTX Inc (GTXI) has been trading since 2004. In the 2000s, it traded as high as $234. At those highs, it gave the company a $5 billion+ market cap. This in spite of the fact the company has never had any sales…not earnings…sales. Fast forward 14 years to yesterday. The stock closed just over $23, still giving the company a market cap of over $500 million even though in those 14 years, the company still has never had sales. This morning, the stock will open down 95% as it looks like the drug did not do well in trials. Moral of the story? We guess you know the moral.

That said, we have also missed the many no sales, no earnings BIOTECHS that have soared throughout the years. We have never felt comfortable going to sleep at night owning a company knowing that if the placebo did better than the drug in trials…that the next day it would be cut in half. And to be clear, there have been many…in the hundreds.

As always pick your poison but know your poison.