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Is the gene-editing industry set to grow expansively in the next five years? With all the speculation behind gene-editing, are CRISPR Therapeutics (CRSP) and bluebird bio (BLUE) good investments over the long term? This is Sailesh Tirupasur. I'm a part of Stock Card's summer internship program in 2020, and this post is a part of my Stock Battle series. I don't own these two stocks, and my goal here is to study them to decide whether to invest or not. Stock research and analysis Gene-editing technology is a rapidly growing industry that manipulates the basic building blocks of life. Two of the leaders in the space of gene-editing are CRISPR Therapeutics and Bluebird bio. CRISPR Therapeutics received some attention last year when it announced positive results from an experimental trial with a product called CTX001. This product is being developed as a potential treatment for two blood disorders called sickle cell disease and transfusion-dependent beta-thalassemia. With newly released data that points to the massive potential for success, investors seem to be quite positive about this company's future. Currently, the company has over $900 million in cash, compared to about $240 million in annual expenses. If successful, gene therapy will target a $5 billion market opportunity for hemoglobin related blood disorders. Bluebird bio stock price has been down since the beginning of the year by almost 30%. However, many experts are still quite enthusiastic about the company's future potential. Unlike most of its competitors, Bluebird bio already has a product in the market with its Zynteglo, a treatment for TDT(terminal transferase) approved in 2019. This company had many investors excited because, before Zynteglo, there were no treatments available for TDT. Bluebird also collaborates with Bristol Myers Squibb (BMY) to develop a potential cancer treatment called ide-cel, which many people are excited about. Moreover, the company has a lower price point that could take off in the coming years due to how fast the gene-editing industry is expected to grow annually. Final Decision While Bluebird has a ton of upside in addition to its already successful product in the market, CRISPR Therapeutics looks much stronger. It has a history of outperforming the market and promises new trial results. Between the two, I would add CRISPR to my watchlist, and revisit Bluebird after a few quarters.
With many industries having to revamp their business model due to COVID-19, How will two titans in the Cruise Line industry tackle the pandemic? Will Royal Caribbean Cruises (RCL) and Norwegian Cruise Line Holdings (NCLH) return to their success before the pandemic, or are they permanently damaged?
This is Sailesh Tirupasur. I'm a part of Stock Card's summer internship program in 2020, and this post is a part of my Stock Battle series. I don't own these two stocks, and my goal here is to study them to decide whether to invest or not.
Stock research and analysis
Cruise Line stocks are in an extremely volatile position at the moment due to difficulties being presented by the pandemic. Royal Caribbean and Norwegian Cruise Line stocks, the world's second and third largest cruise companies, are down around 6% and 5% today. However, many experts are saying that cruise stocks could be an interesting long term play since their stock price has fallen so low. Before COVID-19, the cruise industry was enjoying some of the most robust industry growth rates outside of the technology sector. According to a graph from cruising industry trade group cruising.org, the number of global ocean cruise passengers has grown by an average of 5.36% annually since 2009. Industry group Cruise Lines International Association had even projected an acceleration to 6.7% growth in 2020 before the pandemic. Some investors are clinging to the hope that once normalcy returns, the cruise line industry will see the return of these high growth numbers, while other investors are concerned with just how much damage COVID-19 could happen due to the industry. Health authorities have banned ships with more than 250 passengers from sailing from the U.S., the sector's largest market. Royal Caribbean also has built up a numerous amount of debt over the years due to acquiring other smaller cruise lines over the years. According to the quarterly report, Royal Caribbean has around 12 billion dollars in debt while also not being able to resume business until September, most likely. Norwegian Cruise Line, on the other hand, has 6 billion in debt and is the smaller of the two companies.
Final Decision
My pick of the day is neither of the two stocks. However, I would watch Norwegian Cruise Line Holdings for now. It has a lower debt as well as an extremely low price point compared to Royal Caribbean Cruises (RCL). However, investing in both companies seems to be a bit of a gamble right now because the impact of the COivd-19 pandemic is still in full force.
The recent news of Walmart's subscription program ignites the old Walmart (Ticker: WMT) vs. Costco (Ticker: COST) debate. Aside from the launch of Walmart+, the question is whether these retail giants benefit from the pandemic? And whether their performance during the COVID-19 pandemic justifies adding to our portfolio?
This is Sailesh Tirupasur. I'm a part of Stock Card's summer internship program in 2020, and this post is a part of my Stock Battle series. I used to publish them every day in our private user community, and I'm expanding them to the blog as of July 8th, 2020.
Stock research and analysis
Costco and Walmart are two of the biggest retail store chains in the United States. While the retail industry seems to be shrinking due to pandemic difficulties and the rise of online shopping, these two retail giants seem to still be going strong.
Costco has recovered from a 30% year-over-year drop in-store visits in April to only a 6.5% drop in June. Moreover, with Texas, Florida, and Arizona seeing a massive rise in cases of COVID-19, Costco is one of the first places consumers visit to stock up on anything from food to household appliances. Costco has seen significant success with its membership model, and almost 20% of all its members are part of their more expensive business membership. On top of that, the wholesaler last reported May sales numbers on June 3 that show a 5.5% U.S. sales jump from the same month last year. Walmart is planning to announce its own membership program later this month called Walmart+, and is expected to offer several perks designed to get customers to shop more often. This has investors excited as loyalty programs like Amazon Prime or Walmart+ tend to lock customers into longer-term relationships with the company. However, some experts are relatively cautious due to the amount of expenditure required in replicating Amazon's delivery system. Amazon has seen nearly a 30% increase every year in delivery costs, which seems to keep going up.
Final decision
While Walmart+ program seems quite promising for the massive retail store, I would have to go with Costco as a safer investment. Costco has a better performance against the overall market and already has a tried-and-teste membership model with many loyal customers. It's a safer bet.
This week's "Master the basics of stock market investing" webinar was all about coffee. Starbucks (Ticker: SBUX) vs. Luckin Coffee (Ticker: LK), who wins the battle in your portfolio? Watch the webinar's recording to figure out which one the battle on Friday! And, while you are at it, make sure to signup for the next upcoming webinar too! Stock Card's winners and losers The winner and the loser stock of the week are both ironically at the mercy of a stock market bubble. One has burst, and the other has just started to shape up: Winner: New Age Beverages Corp (Ticker: NBEV) What's the latest craze in the stock market? If you answered "cannabis", you are correct. Today's winner is a small wellness beverage company that sells ready-to-drink tea and Kombucha. The craze is about the company's upcoming cannabidiol infused drink, and the stock market is gobbling up the stock. However, the company's recent quarterly earnings are painting a different picture. The company’s quarterly revenues were down, and its loss per share got bigger. To what extent New Age beverages Corp can live up to the expectations is anyone's guess, but there is no doubt that the stock is getting into an overvalued range that is not backed by its performance. Have a look at the company's Stock Card now. Loser: NVIDIA Corp (Ticker: NVDA) Nvidia’s stock has had a bad week! It fell by 14.37% on Thursday and went down again on Friday close to 20%. Add all that up, and the company’s share price is down 17.5% year-to-date. What happened? Cryptocurrency bubble burst! All business units are growing double-digit, except the sales of the gaming GPUs that were the darling of the cryptocurrency miners for a better part of the year. The company's management continued to manufacture their new high-capacity gaming chips. While the demand for chips fell, the price did not drop as fast as it should have. Consequently, Nvidia owns a large inventory that is not selling as fast as it should. The company stays well-operated and a leader. But such excess inventory needs attention. It's easy to blame the cryptocurrency miners for Nvidia's misfortune. However, the management is as equally responsible as the miners. The company may not recover from this excess inventory anytime soon, but there is no doubt that the stock price is entering the undervalued range. Have a look at the company's Stock Card now. Renegade Investors podcast
How To Invest YouTube Channel The latest episode of the How To Invest YouTube channel is up. One of our latest Stock Card Premium members inspired this episode. She called me one day and said, I couldn't do it! I logged in to my account, and there were so many financial phrases in a gibberish language that I decided to skip investing. That's the inspiration behind the episode four of our YouTube channel. If you are new to investing or you know someone who is, this episode is a must-watch. Stock Card Premium Stock Card Premium members were going at long-term investing as strong as always. One of the Stock Cards that we published for our Stock Card premium users that piqued our interest this week was Sleep Number (Ticker: SNBR). The company is one of those rare retailers that delivers a perfect combination of digital and physical retail experience. Have a look at the company's Stock Card. Just remember that publishing a new Stock Card for our premium members does not automatically mean we are investing in it. That's it for this edition! Happy Weekend, folks! Don't forget to share this blog post with your friends if you find it helpful, and connect with us to share your thought and ideas
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