The Panic-Proof Portfolio (Stockchase Research) Kiniksa Pharmaceuticals KNSA-Q PAST TOP PICK Apr 20, 2023

KNSA is a pharmaceuticals company that focuses on autoimmune and anti inflammatory diseases and cancers.  It is just now reaping the benefit of commercially released drug to help patients with inflammation of the sack around the heart.  It trades at only 5x earnings, has a ROE of 63% and is a low beta stock (acts more independently from the underlying equity market).  We recommend placing a stop-loss at $9, looking to achieve $22 — upside potential over 85%.  Yield 0%

We reiterate this $1 billion marketcap pharmaceutical company as a TOP PICK.  Recently reported earnings beat expectations.  Analysts project annual revenue growth exceeding 25% for the next three years.  It trades under 3x book and supports a 70% ROE.  We recommend trailing up the stop-loss (from $10) to $13, looking to achieve $22 -- upside potential of 51%.  Yield 0%

Our PAST TOP PICK with KNSA is progressing well.  To remain disciplined, we recommend trailing up the stop (from $13) to $15 at this time.  

We reiterate KNSA as a TOP PICK following recently reported revenue growth of 165%, assisted by its drug success that reduces inflammation of the sac surrounding the heart.  It trades at 5x earnings and supports an 80% ROE.  We recommend trailing up the stop (from $15) to $16, looking to achieve $25 -- upside potential of 40%.  Yield 0%  

Our PAST TOP PICK with KNSA has triggered its stop at $16.  To remain disciplined, we recommend covering the position at this time. This will result in a net investment gain of 14%, when combined with previous recommendations.