Tuesday, May 12, 2020

Anixa Biosciences: In The Middle Of Difficulty Is An Opportunity

Summary
Amid the Corona Bear market, fundamentally robust stocks are trading on a deep bargain relative to their true worth.
Taking the heat of the bear market, Anixa BioScience's shares are beaten down to an extremely enticing valuation for growth and value investors.
At the heart of Anixa is the next-generation CAR-T that can treat deadly solid tumors. Early data for the ovarian cancer franchise is quite robust.
Riding prudent corporate strategies and brewing promising franchises, I expect Anixa to trade much higher at the next bull market cycle.
On behalf of IBI, I wish you all a Happy Mother's Day!
Bull markets are born on pessimism, grown on skepticism, mature on optimism and die on euphoria. The time of maximum pessimism is the best time to buy, and the time of maximum optimism is the best time to sell. - Sir John Templeton

Introduction To Corona Bear Market And CAR-T

It's been approximately six months into the Coronavirus pandemic. As of May 10th, 2020, the World Health Organization (i.e., WHO) revealed 3.9M Sars-CoV-2 infections with 274K deaths. Following Coronavirus' devastation, the stock market plunged deep into bearish territory. Driven by fear, massive selling pushed many fundamentally robust companies to trade at a deep bargain. If you've been following my coverage, you'd know that I love CAR-T stocks.
Back in 2017, my two favorite CAR-T innovators - Kite Pharma (KITE) and Juno Therapeutics (JUNO) - were both acquired for sizable gains. During this Corona bear market, I'm not gun shy to search for more promising CAR-T companies. A notable candidate that stood out is Anixa Biosciences (ANIX). Despite its strong fundamental and expansive pipeline, Anixa depreciated over 50% in the past six months.

A Tremendous Opportunity

Right now, you're fearful of the uncertainty about the future. Your thoughts are ruminating on what can happen to your well-being and to your stocks. My friends, I can imagine how you feel. I want you to look at the history of pandemics. As such, you'd see that all outbreaks like ebola always eventually subsided. As you realize that fear is nothing more than False Expectations Appearing Real, you'd see that Coronavirus is no exception.
Sure, it is likely to come back next year. Yet it'll be in strains much less virulent like the seasonal flu. After every storm, the sun will always shine. If you pick up fundamentally sound companies during this Corona bear market, you can potentially gain multiple folds at the next bull market cycle. In this research, I'll present a fundamental analysis of Anixa and provide my forward expectations on this highly volatile growth equity.
Figure 1: Anixa chart (Source: StockCharts)

Tuesday, April 28, 2020

IBI Research On Avalon GloboCare: Coronavirus Drug Discovery By Serendipity

Summary
The Coronavirus pandemic is wreaking havocs worldwide. There are still more patients being infected and dying from this virus daily.
Despite the early biotech resurgence, many fundamentally robust companies are trading at a deep bargain.
Avalon GloboCare made my Top Five Picks for the Corona bear market. In fact, the company is my number one choice.
Due to its powerful therapeutic design platforms, Avalon recently launched a highly differentiated Coronavirus franchise coined AVA Trap.
The company also implemented a Taskforce known as Avalon Combat COVID-19 Taskforce (“ACCT”). It is led by the Director/Former Congressman Billy Tauzin and the President/CEO Dr. David Jin.
Bull markets are born on pessimism, grown on skepticism, mature on optimism and die on euphoria. The time of maximum pessimism is the best time to buy, and the time of maximum optimism is the best time to sell. - Sir. John Templeton
You are winding down the last week of April, i.e., the month of Carnage for the SARS-CoV-2 virus (i.e., Coronavirus) pandemic. Therefore, I'd like to revisit my Top Five Picks that are poised to trade several folds higher at the next raging bull market cycle. In response to IBI members' request, I created a dedicated community room where you can share your top stocks. Looking at the growing list, there are many fundamentally robust growers. In my view, the stock tips shared in "Your IBI Poll" will likely deliver you a fortune in the coming years.
That being said, I want to feature my favorite growth equity, Avalon GloboCare (NASDAQ:AVCO). As a leading CAR-T innovator, Avalon has the seamless upstream, midstream, and downstream integration. That stellar infrastructure enables the company to be highly adaptable to changing market conditions. As such, it can enjoy ingenuity through serendipity. In this research, I'll focus on Avalon's latest Coronavirus franchise and provide my forward expectations of this stellar grower.
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 recommend that you skip to the subsequent section. Founded in 2016, Avalon GloboCare has strategic operations throughout various areas in the USA and China. Leading by a topnotch management team, the company sets out to make history in the therapeutic and diagnostic landscapes.
Figure 2: Avalon headquarters (Source: Avalon)
Using a trident-like approach of Poseidon, Avalon is poised to capture three lucrative niches. They include regenerative medicine, exosome diagnostics, and cellular immunotherapy (i.e., CAR-T). With prudent strategies and lofty goals, the firm seeks to alleviate worldwide sufferings for patients afflicted by cancers and other diseases. Concurrently, Avalon is unlocking tremendous value for shareholders with much more to come.
Figure 3: CAR-T pipeline (Source: Avalon)

Coronavirus Pandemic 

Before diving into Avalon's groundbreaking development, you should check the latest insight on the Coronavirus pandemic. Of note, I use the data from the two most reputable sources, i.e., the World Health Organization (i.e., WHO) and the U.S. Centers for Disease Control and Preventions (i.e., CDC).

Wednesday, January 29, 2020

IBI Research On Avalon: Mega Partnerships For Rapid Pipeline Advancement

Summary
Despite its young age, Avalon Globocare is aggressively progressing on multiple fronts.
In mid-2019, the company secured a colossal partnership with GE Healthcare.
Avalon recently revealed another partnership. That is with China Nanjing Cell Valley.
This collaboration enabled Avalon to expedite its clinical advancement for the next-generation CAR-T.
Amid strong fundamental development, the stock is trading at a deep bargain to its true worth.
Opportunities come infrequently. When it rains gold, put out the bucket, not the thimble. - Warren Buffett 
As you can see, all giant biotech companies have to start from somewhere. That is to say, Merck (MRK) didn't become a mega bio-stock overnight. It takes time, tremendous intelligence, and capital to nurture a young biotech to become a giant pharma of the future. Hence, if you invest in a powerful young bio company, you just found your ticket to a luxurious retirement. Now doesn't mean that you'll suddenly become rich overnight. You need to conquer the volatility associated with your bio-stock. And you can do that by being patient in holding your shares for the long haul. Better yet, you should build more stakes at opportunistic occasions, i.e. at the dips.
That being said, I'm attracted to Avalon Globocare (OTC:AVCO) because of its stellar management, premier chimeric antigen receptor (CAR-T), regenerative medicines, and exosomes empowered diagnostics. If you've been following my work on CAR-Ts, you'd know that I like Kite Pharma (KITE) and Juno Therapeutics (JUNO) that are acquired. Make no doubt, they have excellent CAR-Ts. Nevertheless, Avalon's CAR-Ts are far more advanced than any first-generation drugs. With signs of rapid advancement, it's spaghetti to sauce that Avalon will become a giant pharma one day. In this research, I'll feature a fundamental analysis on Avalon and provide my expectations of this Philip 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. Based in Freehold, New Jersey, Avalon is engaged in the innovation and commercialization of novel medicines and disruptive diagnostics. Driven by tireless efforts, the company is poised to serve the global unmet needs in cancer and various conditions.
Of corporate strategy, Avalon employs a trident-like approach of Poseidon. In other words, the company captures opportunities in three lucrative niches. They include exosomes diagnostics, regenerative medicine, and cellular immunotherapy (i.e. CAR-T). As shown below, there are several potential blockbusters, including AVA-101, -201, and -203.
Figure 2: Diagnostic and therapeutic pipeline (Source: Avalon)
Regarding the diagnostic portfolio, Avalon reaps the ingenious science of "exosomal biomarkers" to launch an avalanche against oral cancer, nonalcoholic steatohepatitis ("NASH"), leukemia, colorectal cancer, and macular degeneration. Though there are different biomarkers, I strongly believe that exosomes are best. In my view, exosomes can pinpoint the diagnosis to confer physicians an edge against deadly conditions.

Mega Partnership To Signal Rapid Pipeline Advancement

Shifting gears, you should analyze important growth catalysts. Notably, I pay close attention to a bioscience innovator's ability to form partnerships. That's because it foretells pipeline advancement. After all, it's extremely difficult for a small company to go at it alone in development and commercialization. By collaborating, a young company can leverage its partner's expertise and infrastructure to expedite the drug development process.
So back on June 22, 2019, Avalon revealed a highly strategic partnership with GE Healthcare. It enabled Avalon to improve business logistics such as automation and standardization for good manufacturing practice (i.e GMP). It's a huge step in expanding Avalon's global cell production capabilities. Ultimately, it positioned the firm to become an undisputed leader in cell-based medicine. I wrote in the prior article,
The partnership will galvanize Avalon's capability to answer the strong demand for cell-based therapies worldwide. The company can now ramp up its supply of clinical-grade cellular products consisting of CAR-T, CAR-NK (natural killer cells), and stem cell-derived exosomes. Specifically, it ensures an adequate supply of biological specimens through scale-up manufacturing throughput and efficiency. Moreover, standardization and automation improve the specimen's uniformity.

China Nanjing Cell Valley Catalyst

Aside from GE Healthcare, Avalon disclosed another powerful partnership on December 20, 2019. That is to say, the company is collaborating with China (Nanjing) Cell Valley (i.e. Cell Valley). The aim is to push forward therapeutics and diagnostics innovation.

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)