To differentiate or not differentiate, that is the question.

 I once thought that writing my own blog would have been a great idea, as I’ve heard of plenty of stories where people started a blog, that eventually grew into a business.  I now know that I will never be one of those people, because I have just way too many things going on in my life these days to be able to tell you play by play how bad of a stock selection IFRX has been because of the one thing that is drastically evident with IFRX; they are the epitome of a one trick pony.  

For Chapter 7, we discuss the concept of diversification; producing multiple products, in multiple locations, in various settings in order to target multiple sectors of the market to avoid a failure of the company because the one product was no longer profitable or effective.  In the case of IFRX, their stock dropped 90% because their product failed testing.  If IFRX had multiple products, multiple researching arms, and multiple studies or income producing ventures, the stock would not have done what it did.  While it is understandable that a company such as this will be constrained in its pursuit for a single success, they should have diversified sectors within the company to ensure that complete market price failure does not occur simply from one bad result.  Multiple other biotech companies have researching departments that help alleviate this potential, but so goes the rise and falls in the penny stock industry… the make or break as they keep living on a prayer.