Stockchase Opinions

Editor Moderna MRNA-Q COMMENT May 18, 2020

As mentioned in our May report to Stockchase subscribers, Moderna (with NIH) began Phase 1 testing for a vaccine back in March. If the drug pasts future tests, Moderna and Swiss drugmaker, Lonza, will produce the drug together. Monday’s news puts Moderna as the frontrunner in the vaccine race and lifted its stock 27% to 84% year-to-date.

$68.140

Stock price when the opinion was issued

Pharma & Healthcare
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They have special technology; this morning they announced a collaboration with AI. Shares have been declining and there are sellers everywhere. You have to wait until they invent the special vaccines en masse they promised.

WATCH

A staple, and that sector is starting to outperform the market. A value play. His target is around $200-ish, if it can break resistance around $140. If it fails, give it a few days, and then walk away if you have to.

DON'T BUY

It's had a huge price surge recently and is now too pricey. Prefers Pfizer.

DON'T BUY

Moderna rallied 29% in May after a good report and news on developing a bird flu vaccine to fight that epidemic. Another boost came when the government approved their RSV vaccine. But Moderna is expected to lose money in the foreseeable future. Instead, look at biopharma.

DON'T BUY

They aren't producing the personalized cancer vaccines he expected, nor using AI as he hoped.

DON'T BUY

Down 33% the past month and could fall more. It isn't making any money and isn't delivering cancer vaccines.

DON'T BUY

They should have done something with the money they had, and are now losing money hand over fist.

DON'T BUY

They aren't delivering on the things--vaccine results--they promise. He struggles with this stock.

DON'T BUY

Post-Covid, they have a pipeline of drugs under development, related to vaccines and cancer. This is higher-risk in health care. They have $3 billion in revenues, but are spending a lot in R&D, more than their revenues, so they're not profitable. 

DON'T BUY

No revenue growth and the company seems unconcerned that they are losing so much money. This is why sentiment has turned against MRNA.