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Exploring and Discovering Biotech Stocks

When it comes to hand-selecting companies for investment, a critical ingredient for success is information. This ingredient becomes even more critical with biotech companies. Each year, many companies have been involved in medicine, medical equipment, genetics, and wellness that take off and provide investors with double or triple-digit gains. During the same years, there are stocks in the sector that, on the surface seem to have just as much going for them, yet a diligent peak below the surface demonstrates their success is less probable.

The ability to get below the surface is one reason the JPMorgan Health Symposium draws between 8,000 and 10,000 attendees each year. Attending is an expensive commitment, but firsthand information, insights from others that are in-the-know, and exposure to scientific paths, trends and research that barely existed a few years earlier, can pay off.

If you were not among the 8,000 counted as attending at the 2023 JP Morgan Health Symposium, you’ll want to know, Noble Capital Markets, teamed with Channelchek to provide a video recap with insights and key takeaways on some of the biotech trends that may be worth exploring. This takeaway, coupled with select company presentations and questions from two top equity analysts in the field is sure to build on your current health sector knowledge. Go Here For More Information (and free access).

Trends Worth Exploring

Molecular diagnostics, involves taking DNA or RNA which is our unique and easily obtainable genetic code, and analyzing the sequences for red flags. These markers can pinpoint the chance for emergence of specific diseases. This field has expanded rapidly in recent years, with some products now being used regularly. But the potential is for far more to be developed and approved for use. This provides for tremendous profit potential.

Alternative pain relief, non-opioid and non-NAISD pain medications for chronic sufferers, could benefit millions who suffer eah day. The potential runs the gamut from chronic headaches or back pain to situations where one is recovering from surgery, sports injuries, or accidents. Millions of prescriptions are written each year for pain medications. This has, in part fed into the opioid crisis in the U.S. It has prompted an almost emergency-level need for replacing older addictive medications with effective alternatives. There are a number of companies making gains in this area of great need.

Gene therapy is a technique to treat or cure disease by modifying one’s genes. In many cases, the hope is that it leads to a permanent cure. New gene therapies are being developed for a wide swath of ailments including life-threatening disease. It is expected to be in many cases the next generation of cure. The methods for gene therapy include replacing a disease-causing gene with a healthy copy, or inactivating the disease-causing gene. In other cases a modified gene may be introduced to help treat the disease. The research and development include cancers, infectious disease, organ failures, and autoimmune problems. Many of these companies will be opening the door to welcome life improvements for the some people, and curing what are now incurable diseases for others.

Drilling Down at the Company Level

It may feel uncomfortable to suggest that investing in and backing the right companies that resolve health issues can be profitable to you. But, the truth is, without investments and interest in stock ownership, tomorrow’s miracle drugs would never come to exist.

Watch the Takeaway from the JP Morgan conference with an eye toward what the company presenters deem important, and then listen to the analysts that also drill deeper beyond concept and stage of development, they discuss finances, which for many less experienced biotech investors, isn’t focused on enough. The companies selected for the Noble Capital Markets Takeaway all fall within one the fields mentioned above. Register Here.

Possible Side-Effects

The J.P. Morgan Healthcare Symposium was held in mid-January. It is one of life science’s largest and most frenzied sharing of information related to the industry. Not everyone gets to go. We’re enthusiastic to be bringing you a slice of the excitement in hopes that you deepen your understanding of not just these companies, but what to look for in others as well.

Paul Hoffman

Managing Editor, Channelchek

Source

https://www.jpmorgan.com/solutions/cib/insights/health-care-conference

https://www.sfchronicle.com/sf/article/JPMorgan-health-care-conference-brings-8-000-to-17706261.php#:~:text=The%20JPMorgan%20health%20care%20conference%2C%20the%20largest%20industry,the%20first%20time%20since%202020%2C%20drawing%208%2C000%20attendees.

Image: Pamela Silva, Univision (Wikimedia Commons)

The Investment Road Less Travelled Has More Opportunity, But Less Available Information

An expanding customer base has always been a solid reason for further exploration of an investment opportunity. An investor’s expectations of growth potential have the power to create initial intrigue and prompt further exploration. This exploration should, at a minimum, include actual data (not hunches), and outside estimates from experts in the field – along with a review of management’s plans.

One also has to understand competition, direct and indirect, and how that is expected to grow. And, of course, current profit and earnings breakdown with an idea of plans for the future. You may even explore if there is a chance the company is a possible acquisition target and how that may impact stock performance. Then, depending on the company or industry, less cursory digging should be done. This is where self-directed investors or small or mid-sized investment advisors get tripped up. They may not have access to someone knowledgeable enough about the company.

Opportunity to Think About

A co-worker asked the other day what I thought of traditional media companies in the U.S. as an investment, including TV and radio. Without thinking too deeply, I said what most people might say, the industry is spread thin as competition for people’s time and attention keeps growing. While anything is good at the right price, if the audience (customer base) is declining, that “right price” is going to be low.

He asked another question, how many Spanish-speaking people are immigrating to the U.S. each year, and what one product will they likely be using that is generally not consumed by English-speaking residents? Although I didn’t know there was a company that has approximately 65% market share of the Spanish-speaking market, I understood where his line of questioning was going – and became intrigued.

A Few Things I Learned

I did some Googling.

The Census Bureau’s monthly Current Population Survey (CPS) shows that the total foreign-born or immigrant population in the U.S. hit 47.9 million in September 2022. This is an increase of 2.9 million since January 2021.

Immigrants from Latin American countries other than Mexico account for 60 percent of the increase in the foreign-born population since January 2021. The Mexican-born population in the U.S. actually decreased by 4%.

At 143,000, the average monthly growth in the foreign-born population, which is 60% Hispanic, is at an all-time high pace.

There is a company, Entravision (EVC), which is a diversified Spanish-language media company. They own both television and radio stations to reach Hispanic consumers across the United States.

Entravision owns and/or operates 53 primary television stations and is the largest affiliate group of both the top-ranked Univision television network and Univision’s TeleFutura network. They have television stations in 20 of the nation’s top 50 Hispanic markets. As far as radio, the company also operates one of the largest groups of primarily Spanish-language radio stations in the U.S.

My thoughts are while the business itself is getting fragmented, the rapidly growing demographic that is likely to tune in to an Entravision station is growing at a rapid pace. And there is very little competition.

An Interesting Time to Explore Spanish Language Media

While I’m still doing some due diligence and reading thoughts from the multiple analysts that cover EVC, including one whose research of the company is available on Channelchek (see it here), I’m waiting for their earnings report this Thursday (November 3).

If my intrigue is still high after Thursday, Noble Capital Markets is holding two lunches and a breakfast where investors can attend one and meet with management, hear them discuss their company, and ask any questions to clear up unanswered questions.

These meetings are in Florida, one in Boca Raton on November 8 and two in Central Florida (Orlando and Winter Park), on November 9. If you will be in the area and also find Entravision worth exploring, register for a breakfast or lunch meeting here.

Take Away

The investment “road less traveled” is often lined with gold but also requires a lot more digging to find useful information that makes you comfortable making a decision. Discovering actionable ideas and then exploring them is what Channelchek is about.

The In-Person “Meet the Management” Series, put on by Noble Capital Markets and Channelchek, is a good way for investment professionals and individuals to supplement the data and research on Channelchek with an opportunity most investors never get, a discussion over breakfast or lunch with management.