Cathie Wood Goes Dumpster Diving

Plsbegentle1
2021-09-10

Key Points

  • Wood bought shares of CRISPR Therapeutics for the ARK Genomic Revolution ETF on Tuesday.
  • Wood also added heavily to the ARK Genomics Revolution ETF's large Invitae position.
  • The ARK Genomics Revolution ETF also snapped up shares of Personalis, a cancer diagnostics company.



I don't know about you, but the day after Labor Day has never been a very productive one. The same cannot be said for ARK Invest CEO and founder Cathie Wood. Yesterday, the collection of exchange-traded funds she manages were just as busy as ever. 

Wood confidently bought some healthcare stocks that have been under a lot of pressure lately. Shares of CRISPR Therapeutics (NASDAQ:CRSP) , Invitae (NYSE:NVTA), and Personalis (NASDAQ:PSNL) have lost more than 40% of their value since they peaked near the beginning of 2021. Here's why Wood finds them so attractive right now.

1.CRISPR Therapeutics

Wood's been bullish on gene-editing pioneer CRISPR Therapeutics since 2017 when she began buying the stock for ARK Invest's exchange-traded funds (ETFs).

CRISPR Therapeutics stock has tumbled around 43% since it peaked this January. Lots of shareholders have been scratching their heads because the company hasn't reported any particularly bad news this year.

In fact, it's been a great year for CRISPR Therapeutics and CTX001, its experimental gene therapy for transfusion-dependent thalassemia and sickle cell disease. In June, the company highlighted further evidence a single administration of CTX001 can help patients end their reliance on problematic blood transfusions. 

The stock has tumbled simply because it rose too fast in 2020. At recent prices, CRISPR Therapeutics still boasts an enormous $9.3 billion market cap. That's still a lot for a company that won't have any products to sell for at least another year.


2.Invitae

Shares of Invitae are down around 44% from a peak they reached in February. Despite the recent drop, shares of this medical genetics company have more than tripled since ARK Invest began buying the stock in 2016.


It's not hard to see why Wood's buying up shares this week at their greatly reduced price. Second-quarter sales soared 152% over the previous-year period to $116 million and they still have a lot of room to grow.


Precision cancer therapies can be far more effective than old-fashioned chemotherapy, but patients need tests from Invitae to know if they're eligible. A recent study suggests just 3% of colorectal cancer patients are getting their tumors screened for mutations that could make them susceptible to effective new treatment options.


In 2021, Invitae has already signed agreements with dozens of drugmakers who market precision cancer therapies. In a nutshell, big pharma could end up paying for lots of cancer patients to get their tumors tested by Invitae. 


Personalis

Wood has been buying up shares of Personalis since its stock market debut in 2019. ARK Invest bought more shares of this young genomics company on Tuesday even though it's given up around 58% of its value since peaking this January.


Like Invitae, Personalis is a diagnostics company working hand in hand with cancer drug developers to help them understand the complex interplay between tumors and the immune cells that surround them. Unlike its competitors, Personalis is attempting to track changes in all 20,000 human genes with a single test.

Personalis' ambitions are feasible thanks to a contract with the U.S. government to help complete the Million Veteran Program. This comprehensive genetic overview of over 825,000 veterans so far is already one of the largest whole-genome sequencing projects ever conducted.


With insight its competitors can't quite match, drugmakers are beating a path to Personalis' door. Non-government revenue in the second quarter soared 72% year over year to $8.2 million. 


Personalis expects around $85 million in total revenue this year, which isn't nearly enough to cover operating expenses. The company expects to lose between $65 million and $70 million this year. 


Before you follow Wood into Personalis or any of these stocks, make sure they become a small part of a well-diversified portfolio. If margins don't improve in the quarters ahead, Personalis' $977 million market cap could get a lot smaller.

Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.

Comments

  • 去二三四五
    2021-09-10
    去二三四五
    我也在纠结,要不要跟着木头姐赌一回。虽然我不太看好这只股票
    • Plsbegentle1
      Do your own research first analysis whether the company have the potential put in your basket list instead of just follow the wood [Happy]
  • 小时候可帅了00
    2021-09-10
    小时候可帅了00
    Invitae Corporation的股价从2月份达到的峰值下跌了约44%,而且市场前景又那么大,所以买买也没有什么好奇怪的。
  • 李苗苗
    2021-09-10
    李苗苗
    木头姐是跟着贝索斯的节奏走的吗?后者也投资了抗衰老类的医疗保健公司,难道是所见略同?
  • 哎呀呀小伙子
    2021-09-10
    哎呀呀小伙子
    很激进的手法,一般人还真看不懂,我也看不懂。
  • 老夫的少女心_
    2021-09-10
    老夫的少女心_
    医药类公司这个时候下手确实是有些不合适。
  • 揭人不揭短
    2021-09-10
    揭人不揭短
    木头姐应该是看到了别人没看到的东西,要不然也不会这么激进。
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