Start the conversation
Comment on This Story
Or to contact Money Morning Customer Service, click here.
"Lead, follow, or get out of the way."
This is one of those well-known aphorisms that's been around forever - though its originator is unknown.
Truth be told, it doesn't matter who said it first. It's a great bit of advice.
Especially as we interpret it.
In our investment work here at Money Morning, we always seek to lead Wall Street and the rest of the packrat investment crowd.
We never follow, especially since "the crowd" tends to be indecisive, late to the gun - or flat out wrong.
And we always get out of the way - sidestepping the dust-rising thump that's an inevitable result of the miscues and sins of the Wall Street Goliath.
It's a simple formula. And a successful one.
And it's the reason we keep outperforming "the crowd."
Like the 2,067% gain on biotech Galapagos NV (NASDAQ: GLPG), the very first stock I recommended on the very first day I published my Member-based service, Private Briefing, back in August 2011.
My readers also pulled down peak gains of more than 2,892% in Nvidia Corp. (NASDAQ: NVDA), 2,828% in Advanced Micro Devices Inc. (NASDAQ: AMD), 818% in biotech buyout Pharmacyclics Inc., and more.
Today, I've decided to share my latest insight on one of my big biotech winners with Money Morning readers because the opportunity is too good to keep to ourselves. And since my colleague Michael Robinson recently talked about 2020's record-crushing biotech IPOs, it's the perfect time to share this.
The company I'm showing you today is essential to biotech stocks. It's a "biotech-enabler" that's zoomed 1,755% since I first told my readers about it back in June 2013.
In 2013, it was trading at $8.14.
It closed July 30 at $151.25 - not long after Investor's Business Daily said the stock had entered a "Buy Zone."
True, but where were they seven years and 1,755% ago?
Of course, what's important now is what comes next - and it's clear this stock's run isn't over...
Biotech Needs This Company - and the Share Price Shows It
Repligen Inc. (NASDAQ: RGEN) is one of those "essential enablers." It produces the proteins, cell-culture growth factor compounds, and related materials that biotechs need to create - and, more importantly, "fast track" - drug compounds.
The company's shares are now in a "breakout" mode because of supercharged demand related to the race for a coronavirus vaccine. The company posted better-than-expected earnings on July 30 - and, even better, boosted its outlook.
For the second quarter, Repligen posted adjusted earnings of $0.42 a share, a year-over-year jump of 27% from last year's profit of $0.33.
That easily eclipsed the $0.26 Wall Street consensus, says FactSet. Revenue rose 24% to $87.5 million - also trouncing the analyst forecast of $79.3 million.
That's great, but earnings are "history." And in a market like this one, we don't want to drive while obsessing over the rearview mirror.
It's what's to come that matters. And boosted "guidance" shows that Repligen's leaders are bullish.
The company now says it expects adjusted earnings per share (EPS) of $1.24 to $1.29 - up from an earlier forecast of $1.09 to $1.14, and way ahead of last year's profits of $1.07.
It also boosted its sales forecast from an earlier range of $309 million to $319 million to a new outlook calling for revenue of $332 million to $340 million.
"During the second quarter, we saw increased demand in all of our product franchises, highlighted by strong growth in Asia and a significant pickup in orders both in the quarter and into the second half of 2020 related to COVID-19 vaccine and therapeutic programs," Repligen Chief Executive Tony J. Hunt said in the earnings release.
And we'll continue to like this stock for the long term. Look to "Accumulate" shares on pullbacks - with a holding period of five years or more.
In the meantime, don't forget to check out my colleague Michael Robinson's latest presentation...
You see, the FDA just put one little-known vaccine player on the fast track to production - one with the power to rapidly transform society, reshape medicine, and potentially mint a flood of new millionaires within the next 12 months.
In fact, not only could this viable vaccine bring COVID-19 to its knees; it could also ignite one company's 583x revenue surge. Click here for the full story...
Follow Money Morning on Facebook and Twitter.
About the Author
Before he moved into the investment-research business in 2005, William (Bill) Patalon III spent 22 years as an award-winning financial reporter, columnist, and editor. Today he is the Executive Editor and Senior Research Analyst for Money Morning at Money Map Press.