Aug 29, 2017|
Kevin Cook (Zacks, JUNO, BLUE) by The Financial Exchange
Transcript - Not for consumer use. Robot overlords only. Will not be accurate.
Kevin took from Zacks is on the line with this right now here to talk about a couple stocks and Kevin thank you for coming on with thoughts out. Give let's talk first about Juno therapeutics is company's exit 15% today is still a good idea to buy them or you bearish on. I am bullish but I actually took some profits today because we bought the stock under 25 bucks and so we are happy to take 70% gain and education listeners don't know what's driving it was yesterday's big news were Gilead Sciences by his. Kite pharmaceuticals. Now the reason that's big deals because kite or rather Gilead finally put their warts they're 35 billion dollar war chest to work and bought somebody to develop. And kite is in this. Amazing. Exciting field called communal oncology. And where researchers are learning how to take your all your body's immune system. And fight cancer and the reason that's important because. The reason cancers that is a scourge is that it it tricks your body it tricks your immune system into ignoring it. So these researchers are going in there and there are there taking keys felt body or bodies but the you know the white night despite. Disease and re engineering them to recognize the protein so they can go and back again and go to war with cancer. Kevin is there any concern on companies like this of is seeing something similar to what we saw with a lot of by a text in kind of 2014 and 2015. Where a ton of them ran out based on expectations of buyouts and so forth and in the last couple years been a real challenge for bio tax. Absolutely and so what he you wanna look at valuations so for instance we we just talked about you know you know is the market cap now at about four billion. And yesterday kite went for twelve billion so that's quite should always run up so much here from from three billion or billion. Because of this it is anticipation that if somebody else could paid this much. Now I'm not saying that it happened because. For Juno it's a little bit less likely the reason I took profits today it was because Celgene already owns 10% of you know. So it's little maybe off the table and acquisition target but. I am a buyer of it any kind of dipped back below forty and the back and look at it is bluebird bio. Same field they they call these docs. Car key CAR stands for America. In the interest after not important if you know what that means but the key is the important part we talk about the heat self. And so these are the three innovative companies in this area and kite you know and bluebird bio. And bluebird is. And the four point eight billion market cap so it's also you know sort of heat on the docket Matt's play it back as well not so. What can you both these companies. I would imagine that investors have to be willing to accept significant amount of volatility in order to own them. Absolutely. I mean you look at bluebird bio they we here in Chicago we just had the big cancer conference called ESCO. And bluebird bio shot from eighty dollars a tool 120 dollars. Because they showed some positive data all in the stock came all the way back down to ninety. Where which is where I bought it. And the reason why it is because I'm making a calculated risk bet that over time. There are pipeline will continue to produce solid data they're also partners was belching and you know as long as they're doing that. And you know the risk reward as favorable if the stock back goes back to eighty on me I'm probably gonna get out I'm not gonna watch you go to zero. You know if they have failed clinical trial. Good Kevin thank you very much for the time we appreciated today banks got Kevin cook from Zacks in the two companies that he was talking about in case you do want to look them up. On your own bluebird bio with a ticker BL UE. And then judo therapeutics with a ticker JUNOO.