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2 Biotech Stocks Under $5 With Blockbuster Potential

2 Biotech Stocks Under $5 With Blockbuster Potential



A lot can change after a single trip around the sun. While COVID-19 has had a devastating impact on the economy, CFRA’s chief investment strategist, Sam Stovall, thinks that the market will continue to stage a recovery, with stocks returning to all-time highs in the next year.

“In other bear markets going back to 1929, and the average 13-month advance was 50%. We have a very good possibility of retracing our steps and challenging the old high,” Stovall stated. He estimates that the S&P 500 will reach the 3,435 mark in the next twelve months, which from current levels, would reflect a 17% pop as well as surpass the 3,393 high-point hit back on February 19.

That’s not to say the reopening of the economy won’t bring about a second wave of COVID-19 infections, but Stovall argues that even if this occurs, the U.S. government’s huge stimulus packages should mitigate the impacts. “We’ve had a lot of people compare it with the crash of ’29, the depression of the 1930s, etc. But back then, you had the government actually tightening their reins, balancing their budget — you did not have a reactive Federal Reserve. Whereas today, you have the exact opposite,” Stovall explained.

With this in mind, investors are scanning the Street for compelling plays, hoping to snap up stocks before share prices set off on an upward trajectory. For more risk-tolerant investors, penny stocks, or names trading for less than $5 per share, are taking center stage. Not only do you get more bang for your buck, but also even minor share price appreciation can result in major percentage gains. However, other market watchers believe that these bargain prices are too good to be true, noting there could be a very good reason a particular ticker is trading at such low levels.

Taking the risk into consideration, we used TipRanks’ database to pinpoint two penny stocks within the healthcare sector that look especially promising; each boasts a “Strong Buy” consensus rating from the analysts and sky-scraping upside potential.

Strongbridge Biopharma (SBBP)

With one rare disease asset, Keveyis, already available and a Phase 3 candidate, Recorlev, Strongbridge could potentially transform the treatment paradigm. Bearing this in mind, ahead of the upcoming Recorlev data release in the third quarter of 2020, several members of the Street believe that its $2.86 share price reflects the ideal entry point.

In a recent update, management stated that the Phase 3 LOGICS data readout for Recorlev in Cushing's syndrome is right on track, with 41 out of 42 patients having already completed the randomized withdrawal phase. In addition, another patient should be enrolled any day now.  

According to Oppenheimer’s Hartaj Singh, there is a “clear path to top-line data in 3Q20," noting that the completion of 41 patients suggests that the COVID-19 disruption will have a limited impact on the quality of the data. Singh also thinks that the Recorlev supply should be enough to last throughout the trial. The 5-star analyst added, “Following a positive readout, an NDA submission for Recorlev could be filed within ~six months, after which a standard 10-month review cycle would be expected. We anticipate a launch in late 2021/early 2022.” To this end, the data readout could drive massive upside.

Despite the fact that SBBP faces competition, Recorlev's profile is clinically relevant, in Singh’s opinion. “Recorlev's profile could not only convert ketoconazole switches but also the existing branded products. From our physician research, we found the dissatisfaction with pasireotide (Signifor), whose diabetes risk is contraindicated with Cushing's, as an opportunity for disruption. In this vein, we believe the improvements on metabolic and other metrics can be particularly meaningful for Recorlev commercially,” he commented.

Singh also points out that Cushing's launch could benefit from the ultra-orphan primary periodic paralysis (PPP) market. “The successful efforts to build strong patient support services and management are likely to translate well into Cushing's, a population which can be challenging to manage due to the complexity of their disease, co-morbidities, and high unmet need,” he noted.

As Singh believes SBBP is an “underappreciated name with significant risk/reward potential," he reiterates an Outperform (i.e. Buy) rating, along with a $6 price target, which implies a 104% upside potential from current levels. (To watch Singh’s track record, click here)   

Turning now to the rest of the Street, other analysts also like what they’re seeing. 3 Buys and no Holds or Sells have been assigned in the last three months, making the consensus rating a Strong Buy. At $12, the average price target puts the upside potential at a whopping 320%. (See Strongbridge stock analysis on TipRanks)

Selecta Biosciences (SELB)

Our second pick is Selecta Biosciences, which is working on overcoming immunogenicity with its innovative ImmTOR immune tolerance platform. With top-line data from the COMPARE Phase 2 study of its SEL-212 candidate in severe gout expected in Q3 of this year, the analyst community thinks that at $3.24 apiece, now is the time to snap up shares.  

Weighing in on SELB for Canaccord, five-star analyst John Newman sees the upcoming data readout as a major catalyst for shares. “We expect SEL-212 to show a large and statistically significant improvement for serum uric acid control vs Krystexxa in COMPARE, which should move the stock significantly higher during 3Q20. We believe the study is highly powered to show a statistically significant benefit for SEL-212,” he stated.

Newman also argues that the data from patients that didn’t receive all of the infusions should still be factored into the results. Expounding on this, he said, “Also, very importantly, patients who drop out of the study due to a missed infusion should still be included in the study, in our view, meaning study powering should not be affected. This is the same statistical treatment used in the original Phase 3 Krystexxa studies.”

Looking more closely at the baseline serum uric acid (SUA) enrollment requirements, they are identical for both the SEL-212 and Krystexxa arms. According to Newman, this means the efficacy difference will be clearly interpretable. It should also be noted that SELB did change the baseline SUA measurement in order to accelerate enrollment, but as both arms were equally impacted, the analyst thinks the alteration is irrelevant.

While some investors expressed concern regarding COVID-19's impact on the data readout, half of the patients had already completed the study as of April, and flexibility regarding the location of blood draws and infusion frequency limits the impact as well.

To this end, Newman left his Buy rating and $13 price target unchanged. Should this target be met, a twelve-month gain of 301% could be in the cards. (To watch Newman’s track record, click here)

What does the rest of the Street think about SELB’s long-term growth prospects? It turns out that other analysts also have high hopes. Only Buy ratings have been received in the last three months, 7 to be exact, so the consensus rating is a Strong Buy. Not to mention the $7.83 average price target implies 139% upside potential. (See Selecta stock analysis on TipRanks)

To find good ideas for stocks trading at attractive valuations, visit TipRanks’ Best Stocks to Buy, a newly launched tool that unites all of TipRanks’ equity insights.

The post 2 Biotech Stocks Under $5 With Blockbuster Potential appeared first on TipRanks Financial Blog.

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Bitcoin price must break $31K to avoid 2023 ‘bearish fractal’

BTC price needs to recoup some more key levels before ditching longer-term bearish risk, the latest Bitcoin analysis says.



BTC price needs to recoup some more key levels before ditching longer-term bearish risk, the latest Bitcoin analysis says.

Bitcoin (BTC) held above $30,000 at the Oct. 23 Wall Street open as analysis said BTC price strength could cancel its “bearish fractal.”

BTC/USD 1-hour chart. Source: TradingView

BTC price preserves majority of early upside

Data from Cointelegraph Markets Pro and TradingView followed BTC/USD as it hovered near $30,700, still up 2.5% on Oct. 23.

The largest cryptocurrency made snap gains after the Oct. 22 weekly close, stopping just shy of $31,000 in what became its highest levels since July. 

Now, popular trader and analyst Rekt Capital is keen to see the $31,000 level break. 

“Bitcoin has Weekly Closed above the Lower High resistance to confirm the breakout,” he commented alongside the weekly chart.

BTC/USD annotated chart. Source: Rekt Capital/X

Rekt Capital argued that BTC/USD could disregard the bearish chart fractal in play throughout 2023 next. This had involved the two year-to-date highs near $32,000 forming a doubletop formation, with downside due as a result.

Specifically, Bitcoin requires a “breach” of $31,000 in order to do so. 

More encouraging cues came from the True Market Deviation indicator from on-chain analytics firm Glassnode.

As noted by its lead analyst, Checkmate, on Oct. 23, the metric, also known as the Average Active Investor (AVIV) profit ratio, has crossed a key level.

Bitcoin’s True Mean Market price (TMM) — the level that BTC/USD spends exactly 50% above or below — is now below its spot price, at $29,780. 

“Have we now paid our bear market dues?” Checkmate queried, describing TMM as Bitcoin’s “most accurate cost basis model.”

Bitcoin True Market Deviation (AVIV) chart. Source: Checkmate/X

Institutions awaken in “Uptober"

Analyzing the potential drivers of the rally, meanwhile, James Van Straten, research and data analyst at crypto insights firm CryptoSlate, flagged the potential approval of the United States’ first Bitcoin spot-price-based exchange-traded fund (ETF).

Related: BTC price nears 2023 highs — 5 things to know in Bitcoin this week

While not yet awarded the green light, a U.S. spot ETF is being treated as an inevitability after legal battles resulted in regulators losing sway.

“The potential approval of a spot ETF for Bitcoin has spurred a significant increase in bullish inflows in the crypto market,” Van Straten wrote in an update published on Oct. 23.

He noted that Glassnode data shows inflows via over-the-counter (OTC) trading desks spiking since late September.

“In addition, the Purpose Bitcoin ETF, with its holdings of approximately 25,000 Bitcoin, has observed consistent inflow throughout the past month. Even though these inflows might not be termed as ‘large,’ they denote a positive market sentiment,” he continued.

“This uptick in inflows across various platforms indicates an optimistic market response to the potential approval of a Bitcoin ETF, bolstering the overall landscape of digital assets.”
Bitcoin transfers to OTC desk wallets. Source: CryptoSlate/Glassnode

The largest Bitcoin institutional investment vehicle, the Grayscale Bitcoin Trust (GBTC), continues to see a lower discount to the Bitcoin spot price, having already seen its smallest negative margin since December 2021.

This stood at -13.12% as of Oct. 23, per data from monitoring resource CoinGlass.

GBTC premium vs. asset holdings vs. BTC/USD chart (screenshot). Source: CoinGlass

This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.

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California bill aims to cap crypto ATM withdrawals at $1K per day to combat scams

A new legislative investigation found some crypto ATMs charging a premium as high as 33%, while a few ATMs had limits of up to $50,000.



A new legislative investigation found some crypto ATMs charging a premium as high as 33%, while a few ATMs had limits of up to $50,000. California legislators have proposed a new bill titled “Digital financial asset transaction kiosks,” calling for a cap on crypto ATM withdrawals of $1,000 per day in light of growing scams. Additionally, starting in 2025, the law would limit operators’ fees to $5 or 15% (whichever is higher). The bill, if approved, would come into effect on Jan. 1, 2024. The bill was introduced after legislative members visited a crypto ATM in Sacramento and found markups as high as 33% on some crypto assets compared with their prices on crypto exchanges. On average, a crypto ATM charges fees between 12% and 25%, according to a legislative analysis. Government officials also found ATMs with limits as high as $50,000, prompting them to take regulatory measures to curb such high premiums and withdrawal limits. There are more than 3,200 Bitcoin ATMs in California, according to Coin ATM Radar. Democratic State Senator Monique Limón, who co-authored the proposed legislation, said the “new bill is about ensuring that people who have been frauded in our communities don’t continue to watch our state step aside” when there are real issues happening. Another provision of the bill would require digital financial asset businesses to obtain a license from the California Department of Financial Protection and Innovation by July 2025 Crypto ATMs are a popular way for people to exchange cash for their choice of cryptocurrency but have become a hub for scams and exploits because of the nature of transactions (i.e., hard cash). Unlike bank and wire transfers, each transaction leaves less of a trail. Related: CoinSmart president says crypto taxes are a ‘little bit more favorable’ outside US Some residents have recently been caught up in such scams, where the scammer persuades the victim to go to a nearby crypto ATM and deposit cash for the crypto of their choice. Some of those affected by ATM scams have lauded the bill and said the low transaction limit would give victims time to realize if they are being duped, reported the LA Times. On the other hand, crypto ATM businesses said the new bill would harm the small operators who must pay rent on their ATMs. The operators noted that the bill fails to address the core issue of the fraud and instead takes a punitive path focused on a specific technology. They warned such a move would shudder the industry and hurt consumers while doing nothing to stop bad actors. Magazine: Bitcoin is on a collision course with ‘Net Zero’ promises

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Fighting the Surveillance State Begins with the Individual

It’s a well-known fact at this point that in the United States and most of the so-called free countries that there is a robust surveillance state in…



It’s a well-known fact at this point that in the United States and most of the so-called free countries that there is a robust surveillance state in place, collecting data on the entire populace. This has been proven beyond a shadow of a doubt by people like Edward Snowden, a National Security Agency (NSA) whistleblower who exposed that the NSA was conducting mass surveillance on US citizens and the world as a whole. The NSA used applications like those from Prism Systems to piggyback on corporations and the data collection their users had agreed to in the terms of service. Google would scan all emails sent to a Gmail address to use for personalized advertising. The government then went to these companies and demanded the data, and this is what makes the surveillance state so interesting. Neo-Marxists like Shoshana Zuboff have dubbed this “surveillance capitalism.” In China, the mass surveillance is conducted at a loss. Setting up closed-circuit television cameras and hiring government workers to be a mandatory editorial staff for blogs and social media can get quite expensive. But if you parasitically leech off a profitable business practice it means that the surveillance state will turn a profit, which is a great asset and an even greater weakness for the system. You see, when that is what your surveillance state is predicated on you’ve effectively given your subjects an opt-out button. They stop using services that spy on them. There is software and online services that are called “open source,” which refers to software whose code is publicly available and can be viewed by anyone so that you can see exactly what that software does. The opposite of this, and what you’re likely already familiar with, is proprietary software. Open-source software generally markets itself as privacy respecting and doesn’t participate in data collection. Services like that can really undo the tricky situation we’ve found ourselves in. It’s a simple fact of life that when the government is given a power—whether that be to regulate, surveil, tax, or plunder—it is nigh impossible to wrestle it away from the state outside somehow disposing of the state entirely. This is why the issue of undoing mass surveillance is of the utmost importance. If the government has the power to spy on its populace, it will. There are people, like the creators of The Social Dilemma, who think that the solution to these privacy invasions isn’t less government but more government, arguing that data collection should be taxed to dissuade the practice or that regulation needs to be put into place to actively prevent abuses. This is silly to anyone who understands the effect regulations have and how the internet really works. You see, data collection is necessary. You can’t have email without some elements of data collection because it’s simply how the protocol functions. The issue is how that data is stored and used. A tax on data collection itself will simply become another cost of doing business. A large company like Google can afford to pay a tax. But a company like Proton Mail, a smaller, more privacy-respecting business, likely couldn’t. Proton Mail’s business model is based on paid subscriptions. If there were additional taxes imposed on them, it’s possible that they would not be able to afford the cost and would be forced out of the market. To reiterate, if one really cares about the destruction of the surveillance state, the first step is to personally make changes to how you interact with online services and to whom you choose to give your data.

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