Bargain hunting for biotech stocks
Вставка
- Опубліковано 3 жов 2024
- My process for finding biotech stocks with strong fundamentals and reasonable value. I discuss the rationale for one stock screen and briefly review four stocks: ACHL, SCYX, CYT and GRPH.
This is not investment advice. As of the posting of this video, I don't hold positions in any of these companies, but I may in the future. This content is meant to be educational.
Why’d you stop making videos
Thank you very much for your videos. I was looking for a channel like this for a long time and I really enjoy watching and learning from it!
Appreciate the support :), thanks for watching!
Loved your video I've been investing in these for over 40 years, probably the most important thing to look at is dilution.
I own three of the four stocks you highlighted but SCYX keeps issuing more and more shares and it's my belief that SCYX shareholders will never make money whether the company drug trials workout or not.
This is amazing content. Thank you so much for sharing your knowledge. This channel is really unique in its offering.
Thank you for this truly great deep dive into some promising advances. Hoping to hear more about what you think going forward.
QBIO is one of them, very undervalued at the moment with high potential.
any clue why achl is so beaten up last days?
Insider buying is also important to look at
Thanks for this, please make more videos on investing in biotech stocks.
If you’re looking for a bargain, it’s $ORMP. Incredible price of $3.72. 0 debt, $142 million in cash. First in the world to reach phase 3 for oral insulin under FDA protocol. Currently proceeding with COVID pill trials in South Africa. This is one to watch.
That is definitely intriguing. Looking at the charts however, MACD is trending negative, PMO trending negative, Stochasitic ossilater trending negative, short term could go down more, however it is definitely oversold.
Why is this old information still on here?!
What tool did you use for the model?
I screen for stocks that trade below the cash they have in the bank, IE negative EV value, most of which are Chinese companies I discard because I don't trust their accounting practices, or companies like NUWE that have so much dilution and reverse splits that shareholders have lost money at a clip that is incomprehensible.
At the top of the market there were 30 stocks, One and a half pages on FINVIZ, a wonderful stock screener by the way.
Today there are 14 pages almost 280, many of which I own and is the reason why I believe the market is extremely undervalued especially these biotechs.
Very interesting video and love the insights from your youtube channel ! I am currently working on my master thesis about investing in Biotech and I was wondering if you had any recommendation on articles, books, papers that could help me. Thank you in advance !
This is a supremely helpful video. Thank you! We hope you come back ❤
Good video. One thing to mention though(and I haven't seen to whole video) is that debt holders are paid out first before equity holders in a liquidation event. If there net cash(cash - debt) is negative or close to zero then you wont get any return if the company goes under, which is something to watch out for.
Good point!
How do you feel about biotech's pricing overall right now? Do you not think it's a good idea to invest in XBI right now as it's retesting its lows in 2020 and 2018? Looks to me on the weekly charts, MFI is trending positive, Slow TKO & MACD trending positive, and XBI is heavily oversold. In my opinion we will see a bounce. Thoughts?
I’m more focused on fundamentals, can’t speak to technicals. In terms of my view of XBI pricing: in my assessment lot of the XBI’s gains since 2016 have been driven by accommodative monetary policy. In 2016, 2018 and 2020 XBI recovered due to Fed. So I think Fed policy will be the biggest driver of XBI pricing in the near term. We saw XBI bounce in May (along with other risk assets) as investors bet on peak inflation. Xbi and risk assets crashed after the June CPI showed inflation had not peaked. I’m not sure if the XBI is fundamentally overvalued at this level, I haven’t analyzed the fundamentals of the component companies.
I am crazy and tried to time the bottom. I did an all in bet on LABU after SP500 closed below 20%. and believe I can 5x. What are your thoughts on the index ETFs like XBI at these prices?
I haven’t analyzed the XBI components so don’t have a view on fair value price from a fundamental perspective. The XBI has tended to move in response to expectations about interest rates, so I’d guess that if the market expects rates to go down, XBI will go up and vice versa
Thank you for the response.
And great video. It took me back to WF IB days.
Can you recommend paid Stock Trading services that focus on swing trading Biotech stocks, or ones that trade a lot of Biotech stocks. A service that sends out buy alerts.
I’m more focused on fundamental investing and don’t know much about trading, so unfortunately don’t know of any such services
Look at Seeking Alpha Also Cabot Wealth investors stock of the week
How about TMBR, ATHX?
fantastic sharing of simple and objective criteria to screen biotech companies
Thanks!
This is a great review! Looking forward to other more specific DD of companies
$MBIO looks good here!
Really interesting 👍
Glad you think so!
1 year later GRPH remains at $2.56
Great video, thank you for posting.
Glad you enjoyed it
Cydy aka leronlimab is up 75 % in the past 2 weeks
This was an extremely interesting video to me as it featured three stocks that I own ACHL Achilles therapeutics, GRPH Graphite bio, CYT Cyteir Therapeutics .The most interesting part was that Illumina, Inc. stock symbol ILMN a nearly $200 stock, was once a high flyer in 2000 internet bubble came down to $3 a share only to trade 2 years later at $1. When ILMN was $3 a share in 2001 it was trading below the cash it had in the bank.
So even though I've been wrong about these biotechnology stocks and they're all getting killed, it gives me hope that the stocks I own will make a comeback. I've been buying BOLT, TLIS, SPRB, ACHL, NXTC, BDTX, ELEV, PYXS, ALGS, GLTO, CYT, TCRX, BCEL, NEXI, LUMO, SNSE, and others all the way down like a idiot and I kept thinking I'm just a glutton for punishment but that just gave me so much more hope to think that a great company like illumina went from three down to one after it was a high flyer and then worked out either way I'll see what happens.
All this while I'm on the final table of $100 Buy-in tournament, got to do something while I'm playing!
I plugged your video on Facebook if you want to search it's Arthur Schiavo
You're an AWESOME FIND, Richard.
Check out eg
TBPH, debt free, 5,65/9,20sh is cash, just about to distribute this cash to shareholders, 3,40/sh will buy U an established line of products, a paid for phase 3 pipeline and a business that will be cash flow positive next Q.
AKBA, a longer story.
MOR...
Thanks & regards
I know the oral insulin story. Fingers crossed and praying. In the meantime
check out eg
TBPH, debt free, 5,65/9,20sh is cash, just about to distribute this cash to shareholders, 3,40/sh will buy U an established line of products, a paid for phase 3 pipeline and a business that will be cash flow positive next Q.
AKBA, a longer story. M&A contingent on EMA (&FDA) approval)
MOR... 50/50 on Monjuvi with Incyte, cash rich, phase 3,... M&A is a high probability.
2seventy TSVT, high probability buyout target by BMY.
Want more?
Cheers.