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With COVID-19 cases at an all-time high in the U.S., which biotech companies are leading the race for a vaccine? Will Moderna (MRNA) or Inovio Pharmaceuticals (INO) create the first COVID-19 vaccine? 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. These stocks are apart of our Companies Shaping the Future stock list. If you want to see other stocks in this category, click here. Stock research and analysis: The COVID-19 vaccine race has been on the mind of many investors looking to take advantage of the pandemic. With several biotech titans and new-comers tackling this issue, many investors are confused about who is at the forefront of this race. Out of many choices, Moderna and Inovio Pharmaceuticals seem to be in the running to create the first successful COVID-19 vaccine. Shares of Moderna are up almost 7% today due to its unveiling of positive test results for a phase one study. Moderna's COVID-19 vaccine contains mRNA that tells the body to produce a structure similar to the spike protein. The theory behind this is it will stimulate the immune system to create antibodies. This potentially groundbreaking research has investors eagerly awaiting the beginning of a phase three test that includes around 30,000 test patients. Despite the positive technological outlook, Moderna still has a couple of issues as an investment. It does not sell any commercial products at the moment, and it has reported quarterly losses for several years. This by itself is significant enough for investors to take a second look before investing, regardless of investor hype. Inovio Pharmaceuticals is a contender due to its results for a phase one study. However, they are quite behind compared to Moderna. Inovio focuses on DNA instead of mRNA. The company's vaccine uses strands of DNA, which are called plasmids, and inserts them directly into the cells. It uses a quick electrical pulse that opens tiny pores in the cells allowing the plasmids to enter (a process called electroporation). While the research is sound, investors are not as confident in Inovio as of late. Shares of Inovio are down almost 7% today after hitting a high point in late June. While they seem to be slower than Moderna with the testing of its COVID-19 vaccine, the results from its phase one study are promising. A staggering 94% of participants aged 18 to 50 demonstrated immune responses six weeks after two doses of the vaccine were given. Like Moderna, Inovio is a risky investment due to the lack of strong operations irrespective of the technological advances in producing the vaccine. Final decision: While Moderna seems to be leading the race with its efficient testing and groundbreaking research, betting on a single company in a volatile race could spell disaster for investors riding the wave. If something goes wrong with the clinical trial's final stage, it may lose a significant portion of its value. Investors who invest in this stock should be ready for volatility and the probability of losing money in exchange with an outsized return likelihood. I'm not confident that any of these two stocks are fit for a beginner investor.
The market rally following the March 2020 Covid-19 dip has somewhat distorted everyone's views. The line between what's worth buying and holding, and what's only pushed by an extraordinary, and most likely short-lived transition of living at home are very blurry. The job of a good investor is to distinguish what's here to stay and what's not. A point of distinction between those two sets of companies is their growth rate before the pandemic. Today, we updated our "A Gift of Stock" portfolio with a company that was already growing before the pandemic. The new stock pick for our "A Gift of Stock" portfolio is a company that was growing rapidly, even before the start of the pandemic, and the pandemic has only proliferated its growth. With less than 3% market share in one of the oldest industries in our economy, the new stock pick is an excellent fit for our "A Gift of Stock" portfolio. Our CEO's nephews, who will be holding on to these shares for more than a decade without worrying about the ups and downs of the market, got a new gift today. Stock Card VIP users have a chance to view the pick. You can subscribe to a free trial and join them reading about this new stock pick and check out all other stocks in this portfolio. Are Joyy (YY) and Cloudflare (NET) undervalued at the moment? Is the pandemic increasing the growth rate of these companies? 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. These stocks are apart of our Companies Shaping the Future stock list. If you want to see other stocks in this category, click here. Stock research and analysis: Two stocks that seem to have high growth potential in the coming years are Joyy (YY) and Cloudflare (NET). Joyy is a Chinese based social media and online digital streaming platform that has garnered a large amount of attention in the east. China's population is around 1.4 billion people, and almost 800 million of these people have access to the internet. That is more than double the population of the United States to put it into perspective. With a considerable audience to potentially attract, investors are excited about the future of this company. Joyy's stock is up 50% year-to-date, and the share price chart shows that it wasn't hit as hard by COVID-19 than other companies. A critical part of Joyy's growth in recent months is its acquisition of a Singapore based live streaming platform called Bigo. Bigo has become the 5th fifth largest site in the world for streaming apps and is continuing to grow. Experts are raising Joyy's price target to about $125, which is a massive $43 difference from the current share price. Cloudflare is a multibillion-dollar online network operator that offers content delivery network services, web infrastructure and website security, and domain name server services for businesses. With more people working remotely from home and businesses relying on teleconferences, Cloudflare's products and services are in high demand. The last earnings report shows that Cloudflare's revenue is surging and beating the predicted forecasts by a wide margin. It also reported 250,000 new customers in the previous quarter, which adds to their existing customer base of over 2.5 million. With revenue and sales doing well, experts are raising the price target to around $52, which is $15 more than the current share price. Final decision: Although both companies have strong qualities for the current landscape of their market, Joyy seems to have more explosive growth potential. While the pandemic has shot Cloudflare up significantly, Joyy seems likely to succeed due to a massive market that it can tap into.
With the recent acquisition of Vivint Solar (VSLR), will Sunrun (RUN) dominate the residential solar panel industry? Will the merger fix the long term business model problems that both companies have?
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. These stocks are apart of our Companies Shaping the Future stock list, if you want to see other stocks in this category, click here.
Stock research and analysis: The global solar energy market is a multibillion dollar industry and according to Allied Market Research is projected to reach $223 billion by 2026, growing at a rate of 20% annually. The need for new sustainable energy has caused many companies to tackle this issue by offering solar energy to mainly residential customers. Two prominent solar companies that have investors excited are Vivint Solar (VSLR) and Sunrun (RUN). Sunrun is in the process of squiring its smaller rival, Vivint Solar. If approved, the merger will create a new titan in the American solar market: the largest solar installer and solar panel lessor in the country, with annual sales exceeding $1.2 billion. The deal comes as America’s consumer solar panel industry claws its way back from the difficulties of the pandemic. Door-to-door sales, a common marketing practice for solar panel businesses, practically ceased as lockdowns were enforced in most states. Experts are quite positive on the deal though and are bumping Vivint Solar's price target from $12 a share to $18 and Sunrun's from $25 to $32. Once merged, the company is expected to control a massive 23% of the solar installation market, beating out other competitors such as Tesla (TSLA). While many investors are excited about the acquisition, there are still several of problems that these companies face in the long term. Long term solar products are considered risky due to how fast the solar panel industry is changing and evolving. Customers, as a result, might not be receptive to older solar panel models in their house and on their rooftop. Costs also seem to be an issue for both Sunrun and Vivint Solar. The residential solar market has been very liberal with their pricing methods.The entire market tends to resort to falling prices to appeal to a larger audience. A team-up between Sunrun and Vivint Solar will have little impact on their cost problem over the long term. While this acquisition could allow Sunrun to maintain higher prices for longer due to reduced competition, Sunrun will still have to contend with a shaky business model. Lastly, the quality of competition in the residential solar market is going to increase dramatically moving forward with new competitors in the space.
Final decision:
There seems to be plenty of reason to get behind this merger due to their large market share as well as positive investor sentiment. However, both these companies' business models will be tested in the long term once better solar technology is developed.
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.
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