GeoInvesting Weekly Premium Email and Call To Action Updates (June 22 – June 26)
This week, we thought we would highlight a post from a friend of ours, Brian McCann, Principal at Bootstrap Capital (@Bootstrap68). His post is relevant because it resonates with the subject of one of our recent weekly Emails, “Invest Through Crises, Not In Reaction To Them.“
Brian posits that, as a market participant, preparation should trump prediction. While this might be common sense to most, it’s obvious that many investors don’t practice this discipline. In my opinion, there is a level of egotism that pervades this market due to it’s sustained climb over the last decade. New investors were just not exposed to catalytic events. Peoples’ overall prediction? The market will go up. Then COVID-19 happened, and they got to experience first hand what a lack of preparedness does to a portfolio. Add a little panic, and you have a recipe for disaster.
Brian starts out his column:
“One of the favorite pastimes for investors, both professional and individual, is to engage in prediction of the future. We spend hours debating the likelihood of inflation, the Federal Reserve’s next move or the likely GDP growth of our favorite country. It’s almost like, “If we can just imagine the right outcome for the next year, or decade, then our investing strategy will become obvious.” In my experience this is a fallacy. Not only does trying to predict the future not help, I think it can be detrimental to your investing success. It forces you, if even unconsciously, to bet on the outcome that you have envisioned. A better use of time and intellectual horsepower is to concentrate on preparation vs. predication.”
Please see the rest of Brian’s post here. Thanks for reading!
~ Zou Soueidan, Senior Editor
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Weekly Wrap Up Summary
Notable Email Highlights
- Origin Agritech Limited (NASDAQ:SEED) – China continues to take steps towards domestic GMO commercialization.
- Altimmune, Inc. (NASDAQ:ALT) – Contributor idea playing out
- Meritage Hospitality Group Inc (OOTC:MHGU) – Expects strong Covid-19 recovery
- Viemed Healthcare, Inc. (NASDAQ:VMD) – Congrats to long time Geoinvesting Member, Dennis Bottjen.
- Sharing a video investor presentation we recently gave to an investment club
SanaCurrents – Premium third party biotech analysis (Ask about one month trial for $7.99)
- $EPZM strategy pays off with FDA approval in second cancer indication
Premium Emails Sent During the Week
Stocks : SEED
Origin Agritech Limited (NASDAQ:SEED) ($7.98; $39.9M market cap) As we’ve covered, China based company SEED is attempting to obtain all the necessary certificates/licenses (3 in total) to allow it to sell GMO products in China…see more.
Altimmune (NASDAQ:ALT) ($9.19, $184.8M market cap; marked up ~20% to $11.20), a clinical stage biopharmaceutical company, was highlighted by one of our contributors, Microcap Gems, last week. In their article, they explained the case of how large insider buying could lead to a short squeeze…see more.
More Notable Updates
Stocks Partially discussed or not highlighted during the week
We wanted to give a shout-out to long-time Geoinvesting member, Dennis Bottjen, for sharing his bullish stock tip on Viemed Healthcare, Inc. (NASDAQ:VMD) on March 30, 2020 when the stock traded at ~$4.50.
VMD provides in-home durable medical equipment and health care solutions to patients in the United States, including non-invasive ventilators; positive airway pressure (PAP) machines; and oxygen units.
The stock peaked at $11.67 on June 22, 2020, a 155% increase from the date of his note to us. The increase came on the heels of strong earnings and sales due to a high COVID-19 related demand for ventilators.
Maj was recently asked to give a presentation to an investment club based in Ireland interested in investing in U.S. microcaps. We decided to share the presentation with you because it goes into some of the background of what we do, as well as gives a glimpse of our performance track record. Please see the presentation here.
Tracking Biotech Catalysts
Epizyme’s strategy pays off with FDA approval in second cancer indication
Companies developing cancer drugs tend to follow a tried-and-true strategy: Win approval in a small cancer indication, then leverage the first approval to move the drug into a bigger market.
SanaCurrents identified on May 8, 2020 how Epizyme (NASDAQ:EPZM) was practicing this strategy to the letter with its cancer drug Tazverik (tazemetostat). The FDA approved Tazverik in January 2020 to treat epithelioid sarcoma (ES), which may afflict 800 patients in the US. Concurrent with its ES application, Epizyme advanced Tazverik to treat follicular lymphoma (FL), which has a much larger patient population.
Shortly after the January approval in ES, the FDA said it would make a decision on Tazverik as a FL treatment on June 18, 2020.
On May 8, 2020, when SanaCurrents issued its report on the June 18 decision, shares of Epizyme traded at $17.31 per share. During June 18 trading, after the FDA announced approval of Tazverik in FL, Epizyme’s stock hit $21.98 per share, reflecting a 30% return in six weeks.
The $21.98 per share figure did not hold, however, and Epizyme’s stock closed on June 18 at $20.46 per share. The 6-week return at the closing price was 18.2%.
SanaCurrents is a premium newsletter that has been offering its Premium service to GeoInvesting Members at a special rate. SanaCurrents assigns likelihoods of favorable FDA decisions or data releases (catalysts) surrounding biotech product development initiatives. Biotech expert Bill Langbein, along with his partner Philip Greyling, apply a host of qualitative and quantitative factors to support their rankings and their purchase of shares before dates of when FDA decisions or the release of important data. To date, SanaCurrents has written 74 reports, now archived at geoinvesting.com. You can go here to learn more about Sanacurrents and get access to the service for $7.99 for the first month.