Update on TGTX, NIO and INO

TG Therapeutics (TGTX): After earnings was released on Monday 8th August, the stock went down bringing a great opportunity for accumulation. Subsequently, the stock has bounced back more than 20%. Particularly, for small biotech growth stocks one should not look for earnings rather one should focus on long term prospect such as drug pipelines and its potential. The MZL (Marginal Zone Lymphoma) has been accepted by FDA for priority review and has given goal date of February 15, 2021 for possible approval. Another cancer drug Follicular Lymphoma (FL) has also been accepted for standard review by FDA with a goal date of June 15, 2021. The FDA also notified TGTX that it's currently not planning to hold an advisory committee meeting to discuss this application which is a good sign. The FDA approvals, particularly MZL could possibly come sooner than Feb 15. If these two drugs gets approved by FDA then current stock price could be history. In addition, there are more drugs in the pipeline. So, I do believe that this stock has a huge potential but as I always say biotechs are very risky. In case of TGTX, I can say  that risk is medium-high. But more clarity will be known once trial data is presented by the company in foreseeable future.

Inovio Pharmaceuticals (INO): INO declared its result on Monday, 8/10 after market close. Its Phase-1 data is still undergoing peer reviews and should be published on any day. The company reported second-quarter loss of $128.7 million, or 83 cents a share, compared with a loss of $29.4 million, or 30 cents a share last year. Revenue rose to $267,000 from about $136,000 in the year-ago quarter. Analysts had forecasted a loss of 17 cents on revenue of $2.6 million. There were no negative news from the company. The only thing Inovio said is that they plan to start Phase 2/3 trial in September. On the very next day Russia said, they already have a vaccine for COVID-19. As a matter of fact, reaction from Wall Street was horrendous and the stock got decimated. Please note that INO is not only a Covid vaccine play, the company has also DNA medicines for Cervical cancer which is in Phase-3 trial, HIV infection in Phase 1/2 trial and Prostate Cancer in Phase 1/2 trial. So, I still like this company irrespective of these noise. I believe its long term prospect is better than MRNA and NVAX. I may be wrong  though, but we will know more in next 2-4 months.

NIO Limited (NIO): The Chinese EV car manufacturer came with spectacular earnings. The company achieved first ever positive cash flow from operations and first positive gross margin close to double digit. NIO posted revenues of $526.4 million vs $486 million expected, up 146.5% year over year. The loss came in 15 cents, much better than estimated 34 cents. The vehicle margin and Gross Margin also exceeded expectation. For the next quarter (Q3) the company guided for deliveries of 11,000- 11,500 EVs, a 132% year over year increase. I have told this earlier and I am telling it again, this is a company going to grow for many years to come, unless there is any unpredictable event which takes a U-turn. 

My View:  The above 3 stocks are good part of my portfolio. My research could go wrong but I don't go crazy on any specific stock irrespective of how great potential it may have. But if I am right barring any unforeseen situation, these stocks may have terrific future potential!! 

Disclaimer: This blog is meant to provide my opinion only. The information provided is to the best of my knowledge but may not be accurate. I do NOT provide any professional recommendation to buy/sell any stock, ETF, mutual fund, or any other security(s). As an investor, it’s your hard-earned money and you decide what is best for you. The above are merely my own opinions. Please contact a professional money manager to buy/sell any security. I do not charge any fees or commission by writing the blog except anything from Google AdSense. I have position(s) on whatever security I write on my blog and avoid recommending any security that I do not own or follow. Anybody buying or selling the equities mentioned here would do it on their own risk.

 

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