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Billionaire Israel Englander Goes Big on These 3 Penny Stocks

Billionaire Israel Englander Goes Big on These 3 Penny Stocks

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4 years ago

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Penny stocks, they divide market watchers like no other. Some investors steer clear of these tickers going for less than $5 apiece, as poor fundamentals or overwhelming headwinds could be keeping them down in the dumps.

On the other hand, penny stocks lure the more risk-tolerant. Not only does the bargain price tag mean you get more bang for your buck, but also even minor share price appreciation can yield huge percentage gains. The implication? Major returns for investors.

Based on the above, weeding out the long-term underperformers from the penny stocks going for gold can pose a significant challenge. In this case, the activity of legendary stock pickers can provide some inspiration.

Among these Wall Street titans is Israel “Izzy” Englander. Englander serves as the Chairman, CEO and Co-Chief Investment Officer of Millennium Management, the hedge fund he founded in 1989. Speaking to his impressive track record, he took the $35 million the fund was started with and grew it into $73 billion in assets under management.

With this in mind, we used TipRanks’ database to find out what the analyst community has to say about three penny stocks that Englander's fund snapped up recently. As it turns out, each ticker has received only Buy ratings. Not to mention substantial upside potential is also on the table.

Kindred Biosciences (KIN)

Hoping to bring innovative biologics to veterinary medicine, Kindred Biosciences believes pets deserve the same kinds of safe and effective medicines that humans enjoy.

At $3.78, Wall Street pros believe its share price could reflect the ideal entry point given everything the company has going for it.

Englander is among the KIN fans. During Q2, Millenium pulled the trigger on 821,752 shares. As for the value of this new position, it comes in at $3,690,000.

Also singing the healthcare name’s praises is Cantor analyst Brandon Folkes. “KIN has a pipeline of very good assets with the potential to generate significant value if they are brought to market,” Folkes explained. The analyst points out that there has been a strategy and priority shake-up over the last 12 months, but he believes the company's “pipeline of novel animal health drugs will drive long-term shareholder value beyond levels reflected in the current stock price.”

The company continues to advance its biologics programs, including IL-31 and IL-4R antibodies for canine atopic dermatitis, KIND-030 for parvovirus in dogs and KIND-510a for the control of non-regenerative anemia in cats, together with long-acting versions of certain molecules, “all of which could be best-in-class large-market opportunities,” in Folkes’ opinion.

Adding to the good news, Folkes sees its partnerships as helping to unlock value. These partnerships include a manufacturing agreement with Vaxart to manufacture Vaxart's oral vaccine candidate for COVID-19.

Summing it all up, Folkes stated, “With animal health companies trading at 4.5-8.5x estimated 2021 revenue, and with business development playing a significant role in driving long-term growth for these larger animal health companies, we believe KIN's pipeline offers a unique suite of meaningful revenue opportunities for larger companies, if KIN can deliver on its pipeline's potential. We believe KIN's stock remains undervalued at current levels, and as 2020 progresses, we expect pipeline advancements to drive the stock higher.”

To this end, Folkes rates KIN an Overweight (i.e. Buy) along with an $11 price target. Should his thesis play out, a potential twelve-month gain of 191% could be in the cards. (To watch Folkes’ track record, click here)

Other analysts don’t beg to differ. With 4 Buy ratings and no Holds or Sells, the word on the Street is that KIN is a Strong Buy. The $11.50 average price target is more aggressive than Folkes’ and implies 208% upside potential. (See KIN stock analysis on TipRanks)

Agenus Inc. (AGEN)

Next up on our list is Agenus, which develops an immuno-oncology portfolio that includes checkpoint antibodies, cell therapies, vaccines and adjuvants.

While this name, which changes hands for $4.02 apiece, has stayed relatively under the radar, some believe big things could be on the horizon.

During Q2, Millenium made a major purchase. Scooping up 2,339,149 shares, the hedge fund’s new AGEN position is valued at $9,193,000.  

5-star analyst Mayank Mamtani, of B.Riley FBR, has also been impressed. On August 6, AGEN provided an update regarding the progress of its pipeline. Its lead programs, AGEN2034 or balstilimab (bali; anti-PD1) and AGEN1884 or zalifrelimab (zali), are on track for separate BLA submissions, both in combination as well as bali as a monotherapy by YE20, in all-comer refractory/relapsed (r/r) cervical cancer.

“Of note, within r/r cervical cancer, zali/bali is clinically de-risked and meaningfully differentiated relative to competing approaches in Merck's Keytruda and/or Iovance's TIL-based cell therapy; further, we view zali/bali to serve as an effective fast-follower to BMY's ipi/nivo across several tumor types with pricing optionality a key strategic leverage for AGEN to deploy upon market entry in 2021,” Mamtani explained.

On top of this, AGEN1181, its multi T-cell and CTLA-4 engaging antibody which was Fc-engineered to overcome a genetic polymorphism in the CD16 allele, produced a strong result in the Phase 1 trial in MSS r/r endometrial cancer. After there was a CR generated by the AGEN1181 1 mg/kg monotherapy dose, AGEN1181 0.3 mg in combination with zali had a PR with ~80% tumor shrinkage change into a CR, as evidenced by a PET scan.

“We are encouraged by AGEN identifying accelerated path to market by pursuing PD-1 refractory melanoma as well as ‘cold’ tumors in MSI-stable endometrial and colorectal cancer, and hepatocellular carcinoma, possibly in Phase 2 single-arm settings, as well as realize full potential longer term in large prevalence tumor types such as NSCLC and prostate cancer. On latter, AGEN's intent to establish AGEN1181 as preferred checkpoint inhibitor for combination therapy was recently validated by AACR'20 abstract demonstrating synergistic benefit with several therapeutic modalities,” Mamtani added.

Bearing all of this in mind, Mamtani rates AGEN a Buy along with an $8 price target, which implies a 99% upside from current levels (To watch Mamtani’s track record, click here)

Looking at the consensus breakdown, it has been quiet when it comes to other analyst activity. In the last three months, only 2 analysts have issued ratings. However, as they were both Buys, the word on the Street is that AGEN is a Moderate Buy. (See Agenus stock analysis on TipRanks)

Marinus (MRNS)

Last but not least is Marinus, which works on neuropsychiatric therapeutics and is considered a leader in orphan epileptic disorders. Currently going for $1.76 apiece, several members of the Street believe that it’s time to get in on the action.

Englander is standing squarely with the bulls on this one. The billionaire’s fund bought up 934,155 shares in Q2. Reflecting a new position, the value of the holding lands at $2,373,000.

Ahead of a fast-approaching data readout, Oppenheimer analyst Jay Olson is on board. Pivotal Phase 3 Marigold data for ganaxolone (GNX) in CDKL5 Deficiency Disorder (CDD) is scheduled for release any day now. The last patient visit for this trial took place in July, and the primary endpoint is seizure frequency reduction over 17-weeks for GNX versus placebo.

“Prior Phase 2 open-label trial data show seizure frequency reduction of -44% at day-28 (N=7) and -54% at 6-months (N=4), suggesting durability, and low discontinuation rate of less than 10% in Phase 3 MARIGOLD suggests favorable tolerability,” Olson commented.

However, Olson points out that this data release is being “overshadowed by long-term value drivers.” The first of these is the RSE pivotal Phase 3 trial of GNX, the design and dosing of which was confirmed in the EOP2 FDA meeting. MRNS still expects to kick off the trial in Q3 2020. Olson noted, “We view pivotal Phase 3 design as similar to positive Phase 2 trial while benefiting from longer dosing with 12 hours exposure vs. 8 hours prior. MRNS expects topline data in 1H22.”

If that wasn’t enough, MRNS announced that patient screening had begun for the Tuberous sclerosis complex (TSC) Phase 2 trial of GNX, with the topline readout slated for 1Q21 with Allo-S biomarker analysis.

Given everything MRNS has going for it, Olson rates the stock an Outperform (i.e. Buy) along with a $6 price target. This suggests that shares could move 237% higher in the next year. (To watch Olson’s track record, click here)

It turns out that other analysts also like what they’re seeing. Only Buy ratings, 4 to be exact, have been received in the last three months, so the consensus rating is a Strong Buy. In addition, the $6.50 average price target indicates 263% upside potential. (See Marinus stock analysis on TipRanks)

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

Disclaimer: The opinions expressed in this article are solely those of the featured analysts. The content is intended to be used for informational purposes only. It is very important to do your own analysis before making any investment.

The post Billionaire Israel Englander Goes Big on These 3 Penny Stocks appeared first on TipRanks Financial Blog.

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Analyst reviews Apple stock price target amid challenges

Here’s what could happen to Apple shares next.

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8 hours ago

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March 12, 2024

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They said it was bound to happen.

It was Jan. 11, 2024 when software giant Microsoft  (MSFT)  briefly passed Apple  (AAPL)  as the most valuable company in the world.

Microsoft's stock closed 0.5% higher, giving it a market valuation of $2.859 trillion. 

It rose as much as 2% during the session and the company was briefly worth $2.903 trillion. Apple closed 0.3% lower, giving the company a market capitalization of $2.886 trillion. 

"It was inevitable that Microsoft would overtake Apple since Microsoft is growing faster and has more to benefit from the generative AI revolution," D.A. Davidson analyst Gil Luria said at the time, according to Reuters.

The two tech titans have jostled for top spot over the years and Microsoft was ahead at last check, with a market cap of $3.085 trillion, compared with Apple's value of $2.684 trillion.

Analysts noted that Apple had been dealing with weakening demand, including for the iPhone, the company’s main source of revenue. 

Demand in China, a major market, has slumped as the country's economy makes a slow recovery from the pandemic and competition from Huawei.

Sales in China of Apple's iPhone fell by 24% in the first six weeks of 2024 compared with a year earlier, according to research firm Counterpoint, as the company contended with stiff competition from a resurgent Huawei "while getting squeezed in the middle on aggressive pricing from the likes of OPPO, vivo and Xiaomi," said senior Analyst Mengmeng Zhang.

“Although the iPhone 15 is a great device, it has no significant upgrades from the previous version, so consumers feel fine holding on to the older-generation iPhones for now," he said.

A man scrolling through Netflix on an Apple iPad Pro. Photo by Phil Barker/Future Publishing via Getty Images.

Future Publishing/Getty Images

Big plans for China

Counterpoint said that the first six weeks of 2023 saw abnormally high numbers with significant unit sales being deferred from December 2022 due to production issues.

Apple is planning to open its eighth store in Shanghai – and its 47th across China – on March 21.

Related: Tech News Now: OpenAI says Musk contract 'never existed', Xiaomi's EV, and more

The company also plans to expand its research centre in Shanghai to support all of its product lines and open a new lab in southern tech hub Shenzhen later this year, according to the South China Morning Post.

Meanwhile, over in Europe, Apple announced changes to comply with the European Union's Digital Markets Act (DMA), which went into effect last week, Reuters reported on March 12.

Beginning this spring, software developers operating in Europe will be able to distribute apps to EU customers directly from their own websites instead of through the App Store.

"To reflect the DMA’s changes, users in the EU can install apps from alternative app marketplaces in iOS 17.4 and later," Apple said on its website, referring to the software platform that runs iPhones and iPads. 

"Users will be able to download an alternative marketplace app from the marketplace developer’s website," the company said.

Apple has also said it will appeal a $2 billion EU antitrust fine for thwarting competition from Spotify  (SPOT)  and other music streaming rivals via restrictions on the App Store.

The company's shares have suffered amid all this upheaval, but some analysts still see good things in Apple's future.

Bank of America Securities confirmed its positive stance on Apple, maintaining a buy rating with a steady price target of $225, according to Investing.com. 

The firm's analysis highlighted Apple's pricing strategy evolution since the introduction of the first iPhone in 2007, with initial prices set at $499 for the 4GB model and $599 for the 8GB model.

BofA said that Apple has consistently launched new iPhone models, including the Pro/Pro Max versions, to target the premium market. 

Analyst says Apple selloff 'overdone'

Concurrently, prices for previous models are typically reduced by about $100 with each new release. 

This strategy, coupled with installment plans from Apple and carriers, has contributed to the iPhone's installed base reaching a record 1.2 billion in 2023, the firm said.

More Tech Stocks:

Apple has effectively shifted its sales mix toward higher-value units despite experiencing slower unit sales, BofA said.

This trend is expected to persist and could help mitigate potential unit sales weaknesses, particularly in China. 

BofA also noted Apple's dominance in the high-end market, maintaining a market share of over 90% in the $1,000 and above price band for the past three years.

The firm also cited the anticipation of a multi-year iPhone cycle propelled by next-generation AI technology, robust services growth, and the potential for margin expansion.

On Monday, Evercore ISI analysts said they believed that the sell-off in the iPhone maker’s shares may be “overdone.”

The firm said that investors' growing preference for AI-focused stocks like Nvidia  (NVDA)  has led to a reallocation of funds away from Apple. 

In addition, Evercore said concerns over weakening demand in China, where Apple may be losing market share in the smartphone segment, have affected investor sentiment.

And then ongoing regulatory issues continue to have an impact on investor confidence in the world's second-biggest company.

“We think the sell-off is rather overdone, while we suspect there is strong valuation support at current levels to down 10%, there are three distinct drivers that could unlock upside on the stock from here – a) Cap allocation, b) AI inferencing, and c) Risk-off/defensive shift," the firm said in a research note.

Related: Veteran fund manager picks favorite stocks for 2024

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Major typhoid fever surveillance study in sub-Saharan Africa indicates need for the introduction of typhoid conjugate vaccines in endemic countries

There is a high burden of typhoid fever in sub-Saharan African countries, according to a new study published today in The Lancet Global Health. This high…

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There is a high burden of typhoid fever in sub-Saharan African countries, according to a new study published today in The Lancet Global Health. This high burden combined with the threat of typhoid strains resistant to antibiotic treatment calls for stronger prevention strategies, including the use and implementation of typhoid conjugate vaccines (TCVs) in endemic settings along with improvements in access to safe water, sanitation, and hygiene.

Credit: IVI

There is a high burden of typhoid fever in sub-Saharan African countries, according to a new study published today in The Lancet Global Health. This high burden combined with the threat of typhoid strains resistant to antibiotic treatment calls for stronger prevention strategies, including the use and implementation of typhoid conjugate vaccines (TCVs) in endemic settings along with improvements in access to safe water, sanitation, and hygiene.

 

The findings from this 4-year study, the Severe Typhoid in Africa (SETA) program, offers new typhoid fever burden estimates from six countries: Burkina Faso, Democratic Republic of the Congo (DRC), Ethiopia, Ghana, Madagascar, and Nigeria, with four countries recording more than 100 cases for every 100,000 person-years of observation, which is considered a high burden. The highest incidence of typhoid was found in DRC with 315 cases per 100,000 people while children between 2-14 years of age were shown to be at highest risk across all 25 study sites.

 

There are an estimated 12.5 to 16.3 million cases of typhoid every year with 140,000 deaths. However, with generic symptoms such as fever, fatigue, and abdominal pain, and the need for blood culture sampling to make a definitive diagnosis, it is difficult for governments to capture the true burden of typhoid in their countries.

 

“Our goal through SETA was to address these gaps in typhoid disease burden data,” said lead author Dr. Florian Marks, Deputy Director General of the International Vaccine Institute (IVI). “Our estimates indicate that introduction of TCV in endemic settings would go to lengths in protecting communities, especially school-aged children, against this potentially deadly—but preventable—disease.”

 

In addition to disease incidence, this study also showed that the emergence of antimicrobial resistance (AMR) in Salmonella Typhi, the bacteria that causes typhoid fever, has led to more reliance beyond the traditional first line of antibiotic treatment. If left untreated, severe cases of the disease can lead to intestinal perforation and even death. This suggests that prevention through vaccination may play a critical role in not only protecting against typhoid fever but reducing the spread of drug-resistant strains of the bacteria.

 

There are two TCVs prequalified by the World Health Organization (WHO) and available through Gavi, the Vaccine Alliance. In February 2024, IVI and SK bioscience announced that a third TCV, SKYTyphoid™, also achieved WHO PQ, paving the way for public procurement and increasing the global supply.

 

Alongside the SETA disease burden study, IVI has been working with colleagues in three African countries to show the real-world impact of TCV vaccination. These studies include a cluster-randomized trial in Agogo, Ghana and two effectiveness studies following mass vaccination in Kisantu, DRC and Imerintsiatosika, Madagascar.

 

Dr. Birkneh Tilahun Tadesse, Associate Director General at IVI and Head of the Real-World Evidence Department, explains, “Through these vaccine effectiveness studies, we aim to show the full public health value of TCV in settings that are directly impacted by a high burden of typhoid fever.” He adds, “Our final objective of course is to eliminate typhoid or to at least reduce the burden to low incidence levels, and that’s what we are attempting in Fiji with an island-wide vaccination campaign.”

 

As more countries in typhoid endemic countries, namely in sub-Saharan Africa and South Asia, consider TCV in national immunization programs, these data will help inform evidence-based policy decisions around typhoid prevention and control.

 

###

 

About the International Vaccine Institute (IVI)
The International Vaccine Institute (IVI) is a non-profit international organization established in 1997 at the initiative of the United Nations Development Programme with a mission to discover, develop, and deliver safe, effective, and affordable vaccines for global health.

IVI’s current portfolio includes vaccines at all stages of pre-clinical and clinical development for infectious diseases that disproportionately affect low- and middle-income countries, such as cholera, typhoid, chikungunya, shigella, salmonella, schistosomiasis, hepatitis E, HPV, COVID-19, and more. IVI developed the world’s first low-cost oral cholera vaccine, pre-qualified by the World Health Organization (WHO) and developed a new-generation typhoid conjugate vaccine that is recently pre-qualified by WHO.

IVI is headquartered in Seoul, Republic of Korea with a Europe Regional Office in Sweden, a Country Office in Austria, and Collaborating Centers in Ghana, Ethiopia, and Madagascar. 39 countries and the WHO are members of IVI, and the governments of the Republic of Korea, Sweden, India, Finland, and Thailand provide state funding. For more information, please visit https://www.ivi.int.

 

CONTACT

Aerie Em, Global Communications & Advocacy Manager
+82 2 881 1386 | aerie.em@ivi.int

Journal

The Lancet Global Health

Method of Research

Observational study

Subject of Research

People

Article Title

Incidence of typhoid fever in Burkina Faso, Democratic Republic of the Congo, Ethiopia, Ghana, Madagascar, and Nigeria (the Severe Typhoid in Africa programme): a population-based study

Article Publication Date

12-Mar-2024

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US Spent More Than Double What It Collected In February, As 2024 Deficit Is Second Highest Ever… And Debt Explodes

US Spent More Than Double What It Collected In February, As 2024 Deficit Is Second Highest Ever… And Debt Explodes

Earlier today, CNBC’s…

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March 12, 2024

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US Spent More Than Double What It Collected In February, As 2024 Deficit Is Second Highest Ever... And Debt Explodes

Earlier today, CNBC's Brian Sullivan took a horse dose of Red Pills when, about six months after our readers, he learned that the US is issuing $1 trillion in debt every 100 days, which prompted him to rage tweet, (or rageX, not sure what the proper term is here) the following:

We’ve added 60% to national debt since 2018. Germany - a country with major economic woes - added ‘just’ 32%.   

Maybe it will never matter.   Maybe MMT is real.   Maybe we just cancel or inflate it out. Maybe career real estate borrowers or career politicians aren’t the answer.

I have no idea.  Only time will tell.   But it’s going to be fascinating to watch it play out.

He is right: it will be fascinating, and the latest budget deficit data simply confirmed that the day of reckoning will come very soon, certainly sooner than the two years that One River's Eric Peters predicted this weekend for the coming "US debt sustainability crisis."

According to the US Treasury, in February, the US collected $271 billion in various tax receipts, and spent $567 billion, more than double what it collected.

The two charts below show the divergence in US tax receipts which have flatlined (on a trailing 6M basis) since the covid pandemic in 2020 (with occasional stimmy-driven surges)...

... and spending which is about 50% higher compared to where it was in 2020.

The end result is that in February, the budget deficit rose to $296.3 billion, up 12.9% from a year prior, and the second highest February deficit on record.

And the punchline: on a cumulative basis, the budget deficit in fiscal 2024 which began on October 1, 2023 is now $828 billion, the second largest cumulative deficit through February on record, surpassed only by the peak covid year of 2021.

But wait there's more: because in a world where the US is spending more than twice what it is collecting, the endgame is clear: debt collapse, and while it won't be tomorrow, or the week after, it is coming... and it's also why the US is now selling $1 trillion in debt every 100 days just to keep operating (and absorbing all those millions of illegal immigrants who will keep voting democrat to preserve the socialist system of the US, so beloved by the Soros clan).

And it gets even worse, because we are now in the ponzi finance stage of the Minsky cycle, with total interest on the debt annualizing well above $1 trillion, and rising every day

... having already surpassed total US defense spending and soon to surpass total health spending and, finally all social security spending, the largest spending category of all, which means that US debt will now rise exponentially higher until the inevitable moment when the US dollar loses its reserve status and it all comes crashing down.

We conclude with another observation by CNBC's Brian Sullivan, who quotes an email by a DC strategist...

.. which lays out the proposed Biden budget as follows:

The budget deficit will growth another $16 TRILLION over next 10 years. Thats *with* the proposed massive tax hikes.

Without them the deficit will grow $19 trillion.

That's why you will hear the "deficit is being reduced by $3 trillion" over the decade.

No family budget or business could exist with this kind of math.

Of course, in the long run, neither can the US... and since neither party will ever cut the spending which everyone by now is so addicted to, the best anyone can do is start planning for the endgame.

Tyler Durden Tue, 03/12/2024 - 18:40

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