Billionaire Israel Englander Bets On These 2 Penny Stocks
Let’s talk about the risk, the reward and the pennies. The three are linked, of course. There is no reward in the stock market without taking some risk – and penny stocks offer investors the optimal combination of the two. Pennies are the cheapest stocks on the public market, usually priced below $ 5 per share. At such a low stock price, even a small gain – an increase in the stock price of just a few cents – can quickly translate into a high percentage return. However, there is a but here. Critics point out that there could be a reason for the favorable price, whether it’s poor fundamentals or overwhelming headwinds. So how are investors supposed to determine which penny stocks are about to rise in importance? Tracking the activity of the investment titans is a strategy. Enter Israel “Izzy” Englander, who is widely known for his impressive stock picking abilities. Englander expressed his interest in the stock market from a young age and in 1989 co-founded the Millennium Management hedge fund with Ronald Shear. Using a wide array of strategies involving a variety of predominantly liquid asset classes, Englander was able to take the $ 35 million the fund was created with and turn it into a $ 45 billion Wall Street monster and more. With an estimated net worth of $ 9.6 billion in 2021, it’s no wonder Wall Street focuses on the guru when he makes a move. With all of this in mind, we used TipRanks’ database to take a closer look at the two-penny stocks that Englander recently picked up. The platform revealed that the two Buy-rated tickers also gained support from some members of the analyst community. T2 Biosystems (TTOO) We will start in the healthcare sector, where T2 Biosystems is working to revolutionize diagnostics. The company offers diagnosticians and medical laboratories a range of devices based on its T2 Magnetic Resonance (T2MR) technology to quickly and accurately diagnose a variety of septic diseases. As the company notes, sepsis kills more people each year than AIDS, breast cancer and prostate cancer combined. Quick and accurate diagnosis is the key to patient survival, and this is the niche T2 aims to fill. The company’s technology allows for diagnostic blood tests with results available within hours, compared to the 1 to 5 days currently taken by most medical laboratory tests. Available test products include the T2Bacteria panel and T2Candida panel, which are the only blood tests approved by the FDA for septic agents that do not need to wait for a blood culture. A T2SARS-CoV-2 panel is also available, using upper respiratory tract samples. T2 has an active product pipeline, with rapid diagnostic tests on the drawing board for a variety of diseases. Upcoming products include the T2Cauris panel and the T2Resistance panel. These test products are currently for Research Use Only (ROU) in the United States. The T2Lyme panel, which will allow a faster diagnosis of difficult-to-determine Lyme disease, is at an early stage in its development. All T2 products operate on the same T2Dx instrument, allowing interchangeability in the laboratory environment. The device offers a simple user interface and works with only 4 ml of whole blood. T2 boasts that its device is used in more than 200 hospitals around the world. In the first quarter of 2021, T2 saw its revenue increase 173% year-over-year to $ 7 million. This was due to a 345% year-over-year increase in product revenue, to $ 4.7 million. The use of sepsis testing in the United States increased 85% year-on-year in the quarter, showing growing acceptance of the device and technology. Izzy Englander is among those who have high hopes for this health name. In the first quarter, Englander’s Millennium raised over 1.36 million TTOO shares, now valued at $ 1.5 million. This brought Englander’s stake in the company to 2.68 million shares, with a market value of $ 2.9 million. Canaccord’s 5-star analyst Charles Duncan also considers himself a fan. Duncan gives the TTOO shares a buy rating and a target price of $ 3.50. This target reflects his confidence in TTOO’s ability to grow by 212% over the next twelve months. (To see Duncan’s track record, click here) âYoY growth in T2 product revenue of + 345% is a positive data point for the company’s post-pandemic business strategy, which is being sustained by a shift to just under 10 direct sales reps in the first quarter. . We see the acquisitions of Cepheid, BioFire, GenMark and Luminex as validation that the hospital laboratory is an attractive industry segment, given the desire of clinicians (and patients) to move from centralized testing strategies to a more decentralized approach. . With these four companies off the table, T2 should benefit from the scarcity value. On the other hand, a more aggressive approach to commercial execution should marry well with a growing awareness of antimicrobial resistance and sepsis, in a post-pandemic environment that prioritizes the diagnosis of infectious diseases, “he said. Duncan noted. It turns out other analysts have high hopes as well. With 4 Buy and 1 Hold, the word on the street is that this stock, which currently costs $ 1.10 apiece, is a strong buy. Additionally, the average price target of $ 2.83 places the upside potential at 156%. (See TTOO stock analysis on TipRanks) Sesen Bio (SESN) The second stock we are looking at, Sesen Bio, is a pharmaceutical company. Sesen works in the cancer treatment segment, developing antibody-drug conjugate therapies. The program takes a fusion protein, tumor-binding approach targeting antibodies against cytotoxic proteins. the only protein molecule that kills cancer cells with minimal toxic effects on the body – and that generates a complementary response from the patient’s natural immune system. Sesen’s pipeline currently includes a drug candidate, vicineum, which is under investigation on multiple leads simultaneously. The primary pathway, which has completed clinical trials and initiated the Biological License Application (BLA) process, is for the treatment of muscle non-invasive bladder cancer. The BLA was accepted for filing by the FDA last February, and the company is on track for potential approval on August 18, 2021. European approval of vicineum for the treatment of bladder cancer is expected early in this year. 2022. The company’s other pipeline projects are in stages. Vicineum is being studied as a treatment for head and neck cancer and is in phase 2. Other avenues of investigation remain at preclinical stages. Clinical-stage biopharmaceutical companies are always highly speculative, and in this case, Englander has not hesitated to speculate. In the first quarter, his company bought 987,926 shares of SESN, increasing its stake in the company by 156%. Englander’s stake in Sesen is now valued at $ 2.9 million. On the SESN for HC Wainwright, 5-star analyst Swayampakula Ramakanth also sees an opportunity. âGiven the favorable benefit / risk profile of Vicineum demonstrated in the phase 3 VISTA study, we believe the drug has a high likelihood of receiving regulatory approvals from the FDA and EMA. Sesen is actively preparing for the potential launch of Vicineum. The company has selected Syneos, a leading contract sales organization, as a partner to build and manage a 35-person sales force to target approximately 2,000 high BCG prescribers. We expect the drug to be commercially available upon approval. sales of $ 516 million by 2030E, up from $ 9 million in 2021E, âsaid Ramakanth. Ramakanth’s comments support his buy rating on the stock, as does his $ 8 price target. At current valuations, this target implies an upside potential of 170% for the next 12 months. (To see Ramakanth’s track record, click here) Sometimes captions can slip under the radar; it attracted only two recent analyst reviews. Both agree, however, that this is a buy-to-buy stock, which is the consensus of the moderate buy consensus. The shares are priced at $ 2.94 with an average price target of $ 7.50 which suggests a 155% rise in the coming year. (See SESN Stock Market Analysis on TipRanks) For great ideas for trading penny stocks at attractive valuations, visit TipRanks Best Stocks to Buy, a newly launched tool that brings together all the information about TipRanks stocks . 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.