Monday, December 16, 2019

IBI Research On Avalon GloboCare: Hitting Mega Rallies

Summary
Amid ongoing pipeline advancement and increasing investor's awareness, Avalon's shares are rallying aggressively.
Riding a Trifecta, Avalon is most likely to deliver at least one blockbuster.
Of the countless CAR-Ts that I studied, I believe that AVA-101 is the most advanced drug. And, it will be made available to patients soon.
That aside, the regenerative medicine asset is set to reach patients in a similar time frame.
Despite the recent appreciation, the stock is still trading at 25% of its current true worth.
Does the management have a determination to continue to develop products or processes that will still further increase total sales potentials when the growth potentials of currently attractive product lines have largely been exploited? - Phillip Fisher
Among countless CAR-T innovators, I like Avalon GloboCare (AVCO) the most. In my view, Avalon has the best CAR-T in the market. The reason is that its CAR-Ts are superior to conventional molecules. First, the company uses a non-viral vector for CAR-T gene delivery. Therefore, it limits the dreaded side effect, cytokine-release syndrome. Second, the firm employs the premier transposon technology which enables a greater bandwidth (i.e. two CAR-T targets). Third, there's a killed-switch to shut down the CAR-T in case the patient is not receptive. Fourth, the CAR-T can be made available to patients within days.
As you can see, Avalon has the best CAR-T in the market. And yet, it's still flying under Wall Street's radar. Not a lot of investors know about Avalon, except IBI members. The 25.5% rally that you recently saw is when more investors are becoming aware of this hidden treasure. In my view, there are significant further upsides. That's because I believe Avalon has several incoming high probability events. In this article, I'll feature a fundamental update on Avalon and provide my forward expectation on this Phillip Fisher growth equity.
Figure 1: Avalon chart (Source: StockCharts)

About The Company

As usual, I'll present a brief corporate overview for new investors. If you are familiar with the firm, I suggest that you skip to the subsequent section. Headquartered in Freehold, New Jersey, Avalon Globocare is dedicated to the innovation and commercialization of forefront medicines and disruptive diagnostics. Driven by tireless efforts, the company is poised to serve the global unmet needs in cancer and various diseases.
Using a trident-like approach of Poseidon, Avalon captures opportunities in three lucrative niches. They include exosomes diagnostics, regenerative medicine, and cellular immunotherapy (i.e. CAR-T). As shown below, the company is brewing several potential blockbusters, including AVA-101, -201, and -203.
Figure 2: Diagnostic and therapeutic pipeline (Source: Avalon)
About the diagnostic portfolio, Avalon harnesses the power of "exosomal biomarkers" to launch an avalanche against oral cancer, nonalcoholic steatohepatitis ("NASH"), leukemia, colorectal cancer, and macular degeneration. Though there are many different biomarkers, I strongly believe that using exosomes is ingenious. That's because exosomes can pinpoint a diagnosis to confer physicians an edge against deadly conditions.

Revealing Hidden Treasures

If you've been following my work, you'd notice know that I emphasize the need for top-notch management. In my view, the management is the hidden treasure of a mega growth stock. Even with a mediocre pipeline, prudent management can improve the company's prospects by in-licensing new medicines. Don't get me wrong. I'm not saying that Avalon has a subpar pipeline. In fact, the company has an extremely robust portfolio of multiple potential blockbusters.

Wednesday, November 13, 2019

IBI Research On Avalon: Fortressing Capital Structure And Strengthening Fundamentals

Summary
The drug pricing and the China Trade War concerns devastated the share price of most bioscience stocks. And, the aforesaid industry headwinds did not spare Avalon.
Due to a bearish bioscience market, Avalon's market valuation is now retraced significantly below its true worth.
Notwithstanding, there are powerful fundamental developments that substantially increased the intrinsic value of Avalon.
The next-generation CAR-T (AVA-001) is launched into the clinic. The Dragon CAR-T (AVA-101) is poised to reach patients in months while other franchises are developing at a rapid pace.
The capital structure is now strengthened as Avalon repurchased all outstanding warrants.
Every decade or so, dark clouds will fill the economic skies, and they will briefly rain gold. When downpours of that sort occur, it’s imperative that we rush outdoors carrying washtubs, not teaspoons. And that we will do. - Warren Buffett
Concerns relating to the China Trade War and drug pricing control have clobbered most bioscience stocks in recent months. For a significantly volatile sector, such news is like gasoline to fuel a raging wildfire. In the aftermath, the share price of a stellar CAR-T innovator dubbed Avalon GloboCare (AVCO) receded into the deep South.
Facing this calamity, it can be easy for you to dispose of your stocks to cease that sickening feeling in your stomach associated with a stock decline. Be that as it may, you must focus on the big investing picture. Time after time, there will be war scare and dark clouds to paint the investing sky with a gloomy view. Nevertheless, the market has always risen to a higher level. Amid this difficulty, I strongly believe that there is an excellent opportunity to build shares in Avalon. In this research, I'll feature a fundamental update on Avalon and provide my expectation for this spectacular growth equity.
Figure 1: Avalon chart (Source: StockCharts)

About The Company

As usual, I'll feature a brief corporate overview for new investors. If you are familiar with the firm, I suggest that you skip to the subsequent section. Headquartered in Freehold New Jersey, Avalon is engaged in the development and commercialization of disruptive medicines and diagnostics to serve the strong unmet needs in cancer and various diseases. Using a trident-like approach of Poseidon, Avalon captures opportunities in three lucrative niches. They include exosomes diagnostics, regenerative medicine, and cellular immunotherapy (i.e. CAR-T).
For the diagnostic portfolio, Avalon harnesses the power of "exosomal biomarkers" to launch an avalanche against oral cancer, nonalcoholic steatohepatitis ("NASH"), leukemia, colorectal cancer, and macular degeneration. In general, biomarker diagnostic is an evolving field. And yet, the application of exosomal biomarkers is ingenious because it can promptly pinpoint a diagnosis to provide physicians an edge against dreaded diseases. When it comes to the fight for life, I believe that accuracy, precision, and timeliness are of paramount importance. As shown below, there are several potential blockbusters such as AVA-101, -201, and -203.
Figure 2: Diagnostic and therapeutic pipeline (Source: Avalon)

Monday, September 30, 2019

IBI Market Insight: To Profit From Value Disconnect

Summary
In recent years, stellar breakthroughs such as CAR-T and gene therapies painted the bioscience landscape.
Previously limited by expertise, we're witnessing an increasing number of companies brewing gene-editing molecules.
Precision medicine therapeutics and companion diagnostics are powering the next wave of innovation.
Nonetheless, the China Trade War and drug pricing pressure lead bioscience stocks to exchange hands at a deep discount.
At the turn of the next market cycle, the long-term oriented investors will enjoy sizable profits.
I like the idea of using artificial intelligence because we're so short of the real thing. - Charlie Munger
I hope that you guys had a great weekend. Asides from doing light tasks like posting on my social media, I shifted away from work during the weekend. In my view, it's best to conduct investment research and news analysis during weekdays. As family and God are matters of the heart, they should at least have the weekend. I believe it's more healthy and balance for you to reserve the weekend to rejuvenate and improve other arenas of life. After all, there is more to life than investing. And, the investment process is not a sprint. It's a marathon so pace yourself accordingly.
Figure 1: Charlie Munger and Warren Buffett (Source: Robyn Twomey)
That being said, I'd like to kick off the week with another series coined Market Insight. This publication is similar to the Industry Trends analysis that I conducted from time to time. Despite the resemblance, there are significant differences. Specifically, Market Insight explores current affairs that are driving broader market behaviors. Aside from providing you with the intelligence affecting your investment value, Market Insights offers various strategies to help you capitalize gains and minimize losses.