Our readers have had a great start to the month in August. A number of companies that we highlighted at the end of last month as being ones to watch in their respective sectors have taken off and are already serving up considerable returns for anyone who acted in line with our expectations.
Here are three of our picks and a look at what’s happened during the week or so subsequent to our coverage.
Company: BTCS Inc (OTCMKTS:BTCS)
Period covered: July 27 $0.075 – August 7 $0.117
Percentage gain across the period: 56%
This one is a cryptocurrency stock that we first highlighted way back at the end of 2016, but that we’ve been watching closely since against a backdrop of bitcoin’s meteoric rise to current levels in and around the $3,000 mark.
We last looked at it back at the end of July as part of this piece, within which we served up two different theses that could potentially justify an exposure. The first, a long term thesis rooted in the BTCS’s organizational shuffle and a renewed focus on leveraging the blockchain as a sales driver going forward. The second, a short term thesis rooted in the likelihood of bitcoin continuing to appreciate in value against fiat currencies and markets buying into companies like BTCS as a way to pick up an exposure to bitcoin’s value run without buying the underlying asset.
The latter of these two theses is what’s driving the recent action and it’s what underpins the 56% gains from the last week or so.
Company: Arrowhead Pharmaceuticals Inc (NASDAQ:ARWR)
Period covered: July 31 $1.73 – August 7 $2.15
Percentage gain across the period: 25%
Arrowhead is a biotechnology stock that we first took a look at as part of this piece back on July 31, 2017. The company is working to bring treatments to market across a range of indications in the US, the three primaries of which used to be based on what’s called its DPC EX1 delivery vehicle. Some safety concerns forced Arrowhead to ditch these assets, however, and the company subsequently pivoted to focus on what it calls its subQ and extra-hepatic pipeline, which includes programs in HBV, AAT, Factor 12, HIF-2alpha.
We suggested that the company’s market capitalization was representative of its previous troubles and hadn’t yet revalued to reflect the pivot and – in turn – the potential of its revised pipeline going forward. We also highlighted an ongoing collaboration with Amgen, Inc. (NASDAQ:AMGN) rooted in a cardiovascular asset as potentially serving to drive value throughout the latter half of this year and suggested that – at current prices – markets are totally ignoring the valuable collaboration.
Our near term thesis was simple: management had scheduled a conference call for August 3 that we felt could serve as pivotal in getting markets to forget the previous asset program and look towards (the potential) of the new one.
Again, turns out we got exactly what we were looking for. Management used the call well and Arrowhead got a boost on the back of the communication. There’s still plenty of long term appreciation on the cards for this one if various 2017/18 catalysts come in as supportive of safety and efficacy for the programs that underpin them.
Company: Opiant Pharmaceuticals Inc (OTCMKTS:OPNT)
Period covered: July 26 $11.40 – August 7 $20
Percentage gain across the period: 75%
Finally, Opiant. This one is another biotechnology play that we took a look at back on July 26. The company had picked up a spike in volume and we took a look at its fundamentals in an attempt to figure out whether the spike was justified and – in turn – whether the operations that underpinned it pointed towards further advance.
Our conclusion was that yes, they did, and that markets seemed to be overlooking a successful phase I outcome and what it meant for Opiant and its shareholders going forward. In short, the company had just shown that its lead development asset can reduce both cMax and tMax (peak concentration and time to peak concentration) of an active ingredient (opioid) considerably and that – by proxy – the technology that underpins this asset could be pivotal in the production of abuse deterrent opioids in the US.
We suggested that markets would load up ahead of a phase II study that built on this phase I data and that this loading (and the catalysts that the phase II brings with it) should boost the company both near and long term.
Again, turns out we were on the money. The stock reached highs of $20 a piece this week and looks set to continue to appreciate against the same thesis near term.
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Disclosure: We have no position in any of the securities mentioned and have not been compensated for this article.