The last seven days were filled with dilutive offers, as biotechs seek to raise cash off the backs of their shareholders. However, it comes with the territory of the space, as these small-cap companies generally burn through cash trying to fund the next blockbuster drug with limited sources of financing available to them. Of course, that doesn't make it any better when dilution comes to your doorstep. Motley Fool health-care analyst David Williamson takes a closer look at Trius (NASDAQ: TSRX ) , and what the company's capital raise means for investors and the stock going forward.
While you can certainly make huge gains in biotech and pharmaceuticals, the best investing approach is to choose great companies and stick with them for the long term. In our free report, "3 Stocks That Will Help You Retire Rich," we name stocks that could help you build long-term wealth and retire well, along with some winning wealth-building strategies that every investor should be aware of. Click here now to keep reading.
The relevant video segment can be found between 0:00 and 3:45.