[ad_1]
TipRanks
Billionaire Ken Griffin Pulls the Trigger on These 2 Penny Stocks
Risk and reward are the yin and yang of stock trading, the two opposite but essential ingredients of any success in the market. And there are no stocks that embody both sides better – the risk factors and the reward potentials – than penny stocks. These stocks, which are priced below $ 5 per share, generally offer high upside potential. Even a small gain in the share price – just a few cents – quickly translates into a high return. Of course, the risk is also real; Not all penny stocks are going to show these kinds of gains, some of them are cheap for a reason, and not all reasons are good. So how are investors supposed to distinguish between long term winners and those who are ready to miss? Monitoring the activity of titanic investors is a strategy. Hedge fund manager Ken Griffin, head of investment firm Citadel, is one such titan, having turned his college business – from a PC in his dormitory – into a multibillion-dollar market giant. A look at Griffin’s performance during the coronavirus crisis shows just how successful he can be. In March of last year, when Corona knocked the bottom out of the markets, Griffin’s Citadel still generated a positive net return of 1.7%. And for the year as a whole, Citadel’s revenue totaled $ 6.7 billion, almost double the previous high in 2018. Turning to Griffin for inspiration, we took a closer look at the shares of two pennies that Griffin’s Citadel made recently. By using the TipRanks database to find out what the analyst community has to say, we’ve learned that every ticker has buy ratings and huge upside potential. Abeona Therapeutics (ABEO) We’ll start with Abeona Therapeutics, a clinical-stage biopharmaceutical company focused on gene and cell therapy. This is a cutting edge field, using the latest genomic technology to treat genetic diseases by inserting corrected copies of DNA directly into affected cells. Abeona has seven drug candidates in the pipeline, with EB-101 and ABO-102 being the most advanced and attractive to investors. EB-101 is about to begin a Phase III trial as a treatment for recessive dystrophic epidermolysis bullosa (RDEB). This is a connective tissue disorder, leaving people with severe skin damage and injury. The cause is a genetic defect that prevents patients from producing the collagen needed to secure the skin layers. If approved, EB-101 would become the first treatment – and the only available – for RDEB. Treatment involves using the drug to transplant the affected gene into the patient’s skin cells, which are then themselves transplanted into the affected skin areas. In early phase trials, the drug was well tolerated by patients, who showed marked improvement for up to 2 years after treatment. The phase III trial is now recruiting patients. ABO-102, the next most advanced drug candidate, is in a Phase I / II study as a treatment for Sanfilippo syndrome, a fatal disease of infancy. The syndrome is currently incurable except with supportive care, and affected children usually survive to the age of 15. ABO-102 is a gene therapy medicine given as a single IV infusion. It delivers working copies of the affected gene to a child’s central nervous system, allowing the body to naturally correct the enzyme deficiency behind the disease. These two drug candidates have received orphan drug designation in the United States and Europe, making government assistance available for their development. In addition, they have also received the Rare Pediatric Disease designation from the FDA. Abeona’s drug pipeline and stock price of $ 2.22 have earned her praise from the pros on Wall Street. This is the position taken by Griffin. By increasing its stake in the company by 181%, Citadel acquired 1.846 million shares in the fourth quarter, which are now worth $ 4.06 million. 5-star analyst Ram Selvaraju of HC Wainwright also considers himself a fan. Selvaraju recently published two notes on ABEO, focusing on the potential of EB-101 and ABO-102. Regarding the first, the analyst notes that “Following the success of the FDA meeting, Abeona is continuing all the necessary steps to enroll the next patient in the VIITAL study and plans to complete the enrollment in 2021 … To our opinion, the FDA meeting and resulting comments bode well for Abeona, as the agency appears to agree with the company’s study design and statistical analysis plan for VIITAL [Phase III] trial… ”Turning to ABO-102, Selvaraju said,“ In our opinion, this data is very intriguing and worth watching to see if it can be confirmed in a larger cohort of patients. From our perspective, the preservation of neurocognitive development in young children with MPS IIIA is likely to be the main measure of effectiveness that resonates with regulators. In keeping with his optimistic view, Selvaraju is pricing ABEO a Buy with a price target of $ 8. If his thesis comes to fruition, a potential jump of ~ 264% year over year could be considered. (To see Selvaraju’s balance sheet, click here) Overall 2 purchases and no take or sell have been awarded in the past three months. Therefore, the analyst consensus is a moderate buy. At $ 6.50, the average price target puts the upside potential at ~ 188%. (See ABEO stock market analysis on TipRanks) Mereo Biopharma (MREO) The second stock we’re looking at, Mereo, is another rare disease biopharmaceutical company. Mereo has a large and diverse pipeline, with six drug candidates at different stages of development. The company’s research programs focus on treatments for solid tumor cancers, ovarian cancer and chronic obstructive pulmonary disease, among other serious conditions. Griffin is among those who have high hopes for this health name. Griffin’s Citadel collected 4.097 million shares in the fourth quarter, which are now worth $ 16.3 million. The biggest news for Mereo was the announcement on December 17 of a collaboration and licensing agreement with California-based Ultragenyx for the further development of Setrusumab, a candidate currently being tested for the treatment of osteogenesis. imperfect, or brittle bone disease. This incurable condition is usually treated with lifestyle changes and exercise. However, setrusumab has been shown in phase 2b studies to cause a dose-dependent increase in bone formation in affected adults. Leerink analyst Joseph Schwartz writes of the Mereo / Ultragenyx partnership: “Although the RARE / MREO deal was unexpected, we are not surprised by the news given that MREO has sought a partner and RARE has extensive experience. in the development and launch of successful bone agents… We see [the] a win-win announcement for RARE and MREO, as the two could complement each other to bring setrusumab to market. In light of those comments, Schwartz rates MREO shares as a buy, and his price target of $ 8 suggests he has a one-year rise of 103%. (To see Schwartz’s track record, click here) Some stocks go under the radar, and MREO is one of them. MREO is the only recent analyst review for this company, and it’s decidedly positive. (See MREO Stock Analysis on TipRanks) To find great ideas for trading penny stocks at attractive valuations, visit Top Stocks to Buy from TipRanks, a newly launched tool that brings together all the information about stocks from TipRanks . Disclaimer: The opinions expressed in this article are solely those of the featured analysts. The content is intended to be used for informational purposes only. It is very important to do your own analysis before making any investment.
[ad_2]
Source link