Value Investing Why Is US Labor Supply So Low? (Milo/Struyven) | Goldman Sachs |
- Why Is US Labor Supply So Low? (Milo/Struyven) | Goldman Sachs
- Dip Dive: Tobii SA - Eye Tracking Technology
- A Hedge Fund Analyst Christmas List - Huge investment resource/newsletter list
- Michael Mauboussin on How to Read Stock Prices (Podcast)
- Summit Therapeutics (SMMT) - Biotech Play for 2022 or Not
- Who are your top 3 funds that you follow?
- Every Stop a Shipping Container Makes from China to Chicago (good primer of the logistics process)
| Why Is US Labor Supply So Low? (Milo/Struyven) | Goldman Sachs Posted: 24 Dec 2021 06:42 PM PST |
| Dip Dive: Tobii SA - Eye Tracking Technology Posted: 24 Dec 2021 09:13 AM PST |
| A Hedge Fund Analyst Christmas List - Huge investment resource/newsletter list Posted: 23 Dec 2021 08:14 PM PST |
| Michael Mauboussin on How to Read Stock Prices (Podcast) Posted: 23 Dec 2021 06:45 PM PST |
| Summit Therapeutics (SMMT) - Biotech Play for 2022 or Not Posted: 24 Dec 2021 08:52 AM PST Fellow investors, I recently came across SMMT in my screening. So this has been a fun holiday dd for me. First, the macro. Biotech (except for vaccine makers) has been red, sometimes deeply, for 2021. Mean reversal in sentiment is bound to happen in the future. Second, the company itself is a "Cambridge, Massachusetts-based medicinal therapies company that IPO'd in the U.S. in 2015. The company was originally domiciled in the United Kingdom but decided to relocate to the United States in 2020 due to perceived strategic advantages like access to capital. As such, the original American Depositary Shares were exchanged for new Summit common stock. The company is levering its proprietary Discuva Platform for drug development. The platform is intended to expand the company's leadership position in the research and development of new mechanism antibiotics by identifying novel targets, determining the mechanism of action, and helping to optimize against bacterial resistance. To enable the platform, the scientist at Summit have created libraries of mutant bacteria, which enable control over bacterial gene expression, and when combined with next-generation sequencing, can identify which genes are essential for a bacterium's survival. The company's pipeline is solely focused on the development of Ridinilazole, which is in late-stage development for C. difficile infection." https://seekingalpha.com/article/4476570-summit-therapeutics-disappointing-but-not-outright-failure The stock recently corrected 50%+ after publishing the report of its Stage 3 clinical trial result for Ridinilazole. Please see the announcement result on SMMT website. There is currently no other drug on the pipeline, so that makes SMMT a single-drug play. Looking at insider activity, Duggan Robert (CEO, own 75% of the company) is an experienced player in biotech who have had both successes and failures. I view this as a positive since many times start-up biotech fails for lack of institutional experience and funding. As stated below, Duggan Robert seems determined to keep funding the company. "Update Regarding Corporate Funding Initiatives The Company is also announcing that it anticipates commencing a rights offering to be available to all holders of record of the Company's common stock in January 2022. It is anticipated that the record date for the distribution of rights to all holders of Common Stock will be in mid-January, at a date to be announced, with share price, gross proceeds, timing, and other terms also anticipated to be announced in January. Mr. Duggan, who is the beneficial shareholder of approximately 71% of our outstanding common stock prior to this rights offering in addition to his executive leadership responsibilities, has indicated that he intends to participate in the rights offering and subscribe for the full amount of his basic subscription rights, but has not made any formal binding commitment to do so. The Company intends to register the rights offering with the Securities and Exchange Commission (the "SEC") by filing a prospectus supplement to the Company's effective shelf registration statement on Form S-3. When available, a copy of the prospectus supplement may be obtained at the website maintained by the SEC at www.sec.gov." Extra funding will come in a rights offering in mid-January. If Duggan Robert fully participates, it will be an injection of about $100-200mm in cash, putting insolvency issues out of the picture for a while. Researching antibiotics has been a capital intensive venture with little profitability. There are interesting articles about the "superbug" risk in the medical science community. I'd recommend people reading it to educate themselves more about the issues. In short, the nature of antibiotics is that it should be used with restraint, as little as possible to avoid the development of bacteria resistant to the drugs. This fly in the face of the current pay structure for drugs where volume of use is important to profitability. The Pasteur Act being considered in the U.S. is seeking to alleviate this issue: the government will pay for the development of antibiotics. Overall, I view SMMT's effort to be praise-worthy. The economics feasibility of its product hinge on (a) the passage of laws like the Pasteur Act and (b) what management will do with the funding round in January. I think the set-up is decent both in macro and micro for a start-up biotech play. So I have opened a long position in SMMT common equity. I intend to fully participate in the rights offering mid-January. The shares have rallied about 20% since I bought my position, so caveat emptor. Best, [link] [comments] |
| Who are your top 3 funds that you follow? Posted: 23 Dec 2021 07:23 PM PST And how much/how long have they been beating the market? [link] [comments] |
| Every Stop a Shipping Container Makes from China to Chicago (good primer of the logistics process) Posted: 22 Dec 2021 05:51 PM PST |
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