2021 has continued to be a great year for the markets, with the Dow Jones Industrial Average up 13.7%; the S&P 500 gaining 15.9%; and the Nasdaq increasing 13.6%. And our contributors did even better! Our picks averaged a return of 47.2% so far this year, and our Top 5 gained an average of 242.5%!
|Joseph Cotton||Cotton’s Technically Speaking||Cassava Sciences||SAVA||506.01|
|Tom Bishop||BI Research||Anavex Life Sciences||AVXL||311.04|
|William Velmer||S.A. Advisory||Predictive Technology||PRED||214.29|
|Bruce Kaser||Cabot Turnaround Letter||Signet Jewelers||SIG||113.05|
|Nate Pile||Nate’s Notes||MannKind||MNKD||68.22|
Congratulations to all of our contributors and their favorites! Researching and choosing stocks is part science/part art. And while there are hundreds of investment newsletters out there, in Wall Street’s Best Digest, we are thrilled that so many of our advisors have been plying their investment prowess for decades and continue to share their best ideas with us. Here are some highlights from each of the Top 5 Picks.
Cassava Sciences — our number one stock—was picked by Joe Cotton of Cotton’s Technically Speaking. In his write-up, Joe said: “Cassava Sciences, Inc. is a clinical stage biotechnology company that develops drugs for nervous system disorders.
“Its lead therapeutic product candidate is PTI-125 which has completed a Phase 2b clinical trial for Alzheimer’s, with very significant results. It actually appeared to improve the symptoms of the disease, not just halt or slow the progress of the disease. The company just raised $75 Million in November to fund its third phase trials, which, if successful, could result in a billion dollar Blockbuster Drug.”
In second place was Anavex, chosen by Tom Bishop, of BI Research. Anavex has been Tom’s favorite for a couple of years, and here are some comments detailing why he chose the stock: “Anavex is working on a number of CNS (central nervous system) diseases, more than doubled in 2020 on more good trial results in Parkinson’s disease dementia (PDD) and Rett syndrome. Meanwhile, it’s Phase 2b/3 Alzheimer’s trial is nearing full enrollment, and recently reported phase 2 PDD success on dementia was encouraging in this regard.
“In fact, the PDD trial results were accepted and presented at an Alzheimer’s conference. Clinical trial results to date for Anavex 2-73 (oral) in all of these diseases have been very positive.
“$10 billion is a reasonable estimate for sales of an Alzheimer’s drug that actually works (nothing on the market really does so far). And if the shares traded at just 2 times revenues, that would be a market cap of $20 billion, not counting success with Rett or PDD. And even using 50% more shares than are outstanding today, that works out to $200 a share.”
Our third place stock, Predictive Technology, was selected by William Velmer of saadvisory.com. When he recommended the stock in January, Bill commented, “PRED still has a collaborative relationship with Thermal Fisher (TMO) and a developmental collaborative relationship with Atrin (cancer therapy). At present, PRED has been ramping-up its COVID 19 saliva testing (6 days/wk) and stem cells sales continues to recover.
“We believe investors have the opportunity to 10-30X their initial investment, even though some might be averaging down from last year’s price recommendation. We rate PRED with our strongest buy recommendation.”
Taking the fourth spot is Signet Jewelers, picked by Bruce Kaser of Cabot Turnaround Letter. Bruce had this to say about Signet: “With capable new leadership since late 2017, Signet is now making impressive progress in reversing all of these problems. Even with the pandemic, third-quarter same store sales rose 15% as positive physical same store sales were bolstered by surging (+71%) online sales.
“The company appears to be in sync with what its customers want while operating with much greater efficiency. Signet’s previously onerous debt burden is now arguably too low. With the shares trading at only 10x forward earnings, the market hasn’t yet recognized that Signet’s turnaround has further to go.”
And rounding out our Top 5 is MannKind, chosen by Nate Pile of Nate’s Notes. Here’s why Nate likes MannKind: “The company’s lead product, Afrezza (a form of ultra-fast acting mealtime insulin that is inhaled rather than injected), is finally starting to make some inroads with both type 1 and type 2 diabetics (and their doctors), and I expect this trend to start accelerating as we get further into the year.
“In addition, the company has licensed its drug delivery platform (Technosphere) to United Therapeutics (UTHR), and United Therapeutics is moving forward aggressively with plans to commercialize a form of treprostinil for the treatment of pulmonary arterial hypertension (PAH) and PAH associated with interstitial lung disease (ILD) using this platform (MannKind will receive royalties on sales if/when the drug is approved).
“Along with this agreement, the company has also licensed the platform to a private company called Receptor Life Sciences that is using it to develop cannabinoid-based pharmaceutical products.“
Here are updates on many of our 2021 Top Picks, as well as some new ideas for your portfolio.