UPDATE on Intrexon (XON)

Intrexon (XON): As you know this is one of the holding in my Blog Portfolio. The company reported its 2nd quarter result last WED, 8/9. It incurred a loss of 16 cents per share which was less than the consensus estimated loss of 21 cents. However, total revenue missed the expectation which came in at $54.4 million vs. estimated $57 million, up 4% year over year. The share did hit its 52-week low of $17.70 last Friday but bounced back to $19.65, up 5.31%.


Background: There were some article in Motley Fool saying that XON is getting most of its revenues only from two companies, which is mostly correct. However, it can also be noted that the company started selling their Salmon Fish in Canda for the first time this quarter. Also, their Apple is set to start selling with premium starting this fall. They have started the robotics mosquito testing in U.S, Brazil, Netherland and also in India. Yes, you heard right, in INDIA too. As the CEO Pointed out in the earnings conference call, he said, "we have approval of the world's first genetically modified animal food. We have approval -- regulatory approvals on the world's first genetically engineered mosquito. We have approval on the world's first genetically engineered fruit. And we see market acceptance. We see regulatory acceptance. We see market acceptance and we see this expanding". They have also next-generation CAR T Cancer therapy program with the biopharmaceutical division of Merck KGaA and ZIOPHARM. They are creating a new venture known as “Precigen” which will focus fully integrated pharmaceutical development and leading player in gene and cell therapy. They are targeting for year-end for its completion.These are all very positive developments. Bottom line is that, when a new innovation takes place it takes longer time than usual which is true for XON. 

My thoughts: As I have said earlier, I do have faith on this company but needs a lot of patience to wait for longer time horizon. Since it keeps fluctuting, one way of investing could be to buy low, sale a portion of shares when it goes up x%, let’s say 15-20%, and keep holding the rest. If it comes down, add little bit more and continue applying the same strategy. Biotech are always risky investments so one has to be very careful on the total amount being invested on a particular company. Of course, reward is significant too…As I keep saying, if the company succeeds on its various ventures then it would be a 10 begger, if not, one should be willing to take some risks. For me personally, I am willing to take some calculated risk but it all depends on each individual’s investment strategy and risk appetite…
 If you would like to participate in my WhatsApp group that I have formed then please send me your phone number, I will add you. That’s a faster way to have better and frequent communication. Moreover, anything important will go on to my Googlegroups as well as my WhatsApp group. Thanks and have a good rest of your weekends. Stay tuned for my next blog, possibly next weekend!

Disclaimer: What I write here is not a recommendation to buy/sell rather my own opinion. Hence, the group members must do their due diligence before taking any action.


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