Reasons why ABSI, RXRX and SDGR are hidden Gems in the AI Biotech space.

 

 

 

Stock Talk

 

There are three Medical biotech AI stocks that merit watching. These are biotech  companies that are using AI and vast data bases to find drugs much faster than the old discovery methods.

After running some dd on the three, I found some interesting dynamics that make these companies emerging to the forefront of a new age of medical break troughs.   Additionally, there is a somewhat hidden aspect to "the fundamentals" of these three that makes them far better at first glance.  These three are a tad better investments than just a "spec stock".   I will note that in reality ALL stocks have a speculative nature.  However, when looking at fundamental analysis of the ABSI, RXRX and SDGR - at first glance you won't find "earnings". This leads us to falsely believe they do not have adequate funding into the future.  To the contrary Chauncy!

The reason you won't find "eps" is because although they have received payments of $100 Million and more with major pharmaceutical in ongoing partnerships that use and collaborate on new drug discovery with their AI platforms - the reason is - they don't count the payments as earnings but accrue the payments over time in going development.

If interested, run some due diligence (dd) on these three symbols.

As of this post, the first two are at or under $10 a share.

ABSI  :  In July 2021, ABSI  entered into a  research collaboration with Merck. The deal entails an upfront payment and the potential for up to $610 million in milestone payments. In addition, AMD in investing and partnering with ABSI.

 
RXRX :  partnership with Nvidia in September 2023, NVDA made a $50 million investment in RXRX. This partnership aims to combine Nvidia's AI capabilities with  Recursion's drug discovery platform to enhance computational drug discovery efforts,

SDGR : Upfront Payment in Nov 24, SDGR announced collaboration with Novartis, securing a $150 million upfront payment.  The agreement includes potential milestones payments and royalties up to aproxiamtely $2.3 Billion, plus royalties on any resulting products (ir.schrodinger.com)

The above three symbols may prove to be interesting growth stocks to run further due diligence and put on the watch list. Maybe even pick up a few shares and as things go, $ cost average on dips, if conditions are right.

Stay tuned for market and stock notes for updates as they may come.

 _________________

  If you dare ... Stay tuned and aware  ....

For now, we close by noting that any views on the market and stocks on any particular day may change in the future days to come. That is why we watch and see how our views match up with the reality of the time.  But trying to look ahead a few months into the future may be a way to do things.  If you think too deep about world events and the recent alliances forming, projecting ahead can be a dicey endeavor.  In all -  we use the word maybe "some", not "too much" and play it accordingly.  Remember, never get arrogant in our various notions because things do change in the market and individual stocks are subject to many factors outside of our control.. So we try to -stay aware.

With all the above caveats and attempted prognostications, I will close this post. Stay tuned for more opining on the market and stocks to watch.

___________

ALL in my humble opinion, scroll down and read more.This site does NOT make Buy / Sell recommendations.
________

Three Medical Biotech AI Stocks to Watch: ABSI, RXRX, and SDGR

 

 

 

Stock Talk

 

There are three Medical biotech AI stocks that merit watching. These are biotech  companies that are using AI and vast data bases to find drugs much faster than the old discovery methods.

The first two are presently under $10 a share.  They are not profitable yet, so that makes them spec stocks by conventional standards.  However, some investors (whales) and BIG companies are investing  and buying up shares with the notion that medical AI represents a revolution in medical discoveries that can treat all sorts of disease and ailments that have confounded the world to this point.

If interested, run some due diligence (dd) on these three symbols.

As of this post, the first two are under $10 a share.

ABSI  in the $4's and $5's

RXRX in the $8's and 9's

The third is a bit higher in share price:

SDGR  around $ 25

The above three symbols may prove to be interesting spec stocks to run further due diligence and put on the watch list. Maybe even pick up a few shares and as things go, $ cost average on dips, if conditions are right.

Stay tuned for market and stock notes for updates as they may come.

 _________________

  If you dare ... Stay tuned and aware  ....

For now, we close by noting that any views on the market and stocks on any particular day may change in the future days to come. That is why we watch and see how our views match up with the reality of the time.  But trying to look ahead a few months into the future may be a way to do things.  If you think too deep about world events and the recent alliances forming, projecting ahead can be a dicey endeavor.  In all -  we use the word maybe "some", not "too much" and play it accordingly.  Remember, never get arrogant in our various notions because things do change in the market and individual stocks are subject to many factors outside of our control.. So we try to -stay aware.

With all the above caveats and attempted prognostications, I will close this post. Stay tuned for more opining on the market and stocks to watch.

___________

ALL in my humble opinion, scroll down and read more.This site does NOT make Buy / Sell recommendations.
________

Two Meme stocks that have the "Mojo" to fly ?

 

 

 

Stock Talk

 

Two "meme" stocks to watch:

BigBear.ai Holdings , Inc (BBAI)

BBAI was mentioned here in the $4's just last week.  It's now a double in the $8's.  This company has no earnings but a lot of belief that their AI applications and services will find more government and business contracts. Last week saw rather intense buying interest on a new contract.  One theme carrying BBAI is with all the new efficiency are new questions. Examples -could AI put people out of work? Could jobs suffer as companies cut back to do more with less people?  Some traders and investors may be buying up BBAI as a hedge against lost jobs of the future. 

D-Wave Quantum Inc. (QBTS)

The Quantum computing sector had it's run.  But then the Nvidia ceo felt his high powered energy dependent GPU's were being threatened by quantum computing. Now, some quantum companies are coming back saying - no so fast to dismiss us, Mr. Jensen.   QBTS is the one with the mojo.

 Forschungszentrum Jülich Purchases D-Wave™ Quantum Computer, Becoming First High-Performance Computing Center in the World to Own D-Wave's Advantage™ System

https://finance.yahoo.com/news/forschungszentrum-j-lich-purchases-d-100000022.html

Dry Powder. Maintain some dry powder manage your portfolio according to your best views and interests to make some money!

 _________________

  If you dare ... Stay tuned and aware  ....

For now, we close by noting that any views on the market and stocks on any particular day may change in the future days to come. That is why we watch and see how our views match up with the reality of the time.  But trying to look ahead a few months into the future may be a way to do things.  If you think too deep about world events and the recent alliances forming, projecting ahead can be a dicey endeavor.  In all -  we use the word maybe "some", not "too much" and play it accordingly.  Remember, never get arrogant in our various notions because things do change in the market and individual stocks are subject to many factors outside of our control.. So we try to -stay aware.

With all the above caveats and attempted prognostications, I will close this post. Stay tuned for more opining on the market and stocks to watch.

___________

ALL in my humble opinion, scroll down and read more.This site does NOT make Buy / Sell recommendations.
________

Market and Stock Notes

 

 

 Market Talk

The government's transition  may not be easy to change back to more fiscal conservatism from the democrats agenda driven ways. Rapidly changing policies even well meaning can have near term implications on the economy.  For example, imposing taxes on imports can initially create higher inflation. The goal could be to create more made in America but that end can be elusive, with mixed initial results.  Uncertainty regarding a dangerous world on the  global stage is something to watch regarding market triggers.

Stock Talk

 

Kratos Defense & Security Solutions, Inc. (KTOS)

This stock has been covered here since the 20's. In other defense stocks of larger companies, we see even though they produced good earnings, the share price got hammered.  It could all be a temporary situation, but some may trade some shares to watch and see.  The near term swings can be hard to predict so taking a gain on some in case it dips?  no shame in taking a gain in some to maybe buy lower in case the "ying-yang" happens.   Maybe "trade" some,  but the view here is to hold some KTOS for the long run.

Kinross Gold Corp (KGC) : Gold mining with steady earnings and a divy too.  As a side note, gold is now over $2900 acting like it wants to head over $3000.  While the past KGC runs into the 12's saw profit taking, with Gold near $3 K, earnings may just support a KGC breakout this time.

Permian Resources (PR): With easing of past natural gas restrictions, a new renaissance back to cleaner and reliable energy that nat gas brings.  PR with Oil and Natural gas co in the Permian basin of America. Drill baby drill staying the course with some PR.

Altria Group, Inc (MO) :  Steady earnings and a near 8% high dividend to reinvest. The recent earnings report beat estimates with a buyback in process. There was a recent court decision that could adversely impact their importing of NJOY devices.  However an updated ACE-2 vape is in development and planned for manufacture in the US places  such as Richmond VA.   The view here is to hold some MO and watch developments.

BigBear.ai Holdings , Inc (BBAI)

BBAI was mentioned here in the $4's just last week.  It's now a double in the $8's.  This company has no earnings but a lot of belief that their AI applications and services will find more government and business contracts. Last week saw rather intense buying interest on a new contract.  One theme carrying BBAI is with all the new efficiency are new questions. Examples -could AI put people out of work? Could jobs suffer as companies cut back to do more with less people?  Some traders and investors may be buying up BBAI as a hedge against lost jobs of the future. 

ABSI - partnership with AMD on AI in medical research.  Also a Merck alliance.  Also, getting into animal research for new veterinarian drugs.  running dd on this spec stock.

 

Dry Powder. Maintain some dry powder manage your portfolio according to your best views and interests to make some money!

 _________________

  If you dare ... Stay tuned and aware  ....

For now, we close by noting that any views on the market and stocks on any particular day may change in the future days to come. That is why we watch and see how our views match up with the reality of the time.  But trying to look ahead a few months into the future may be a way to do things.  If you think too deep about world events and the recent alliances forming, projecting ahead can be a dicey endeavor.  In all -  we use the word maybe "some", not "too much" and play it accordingly.  Remember, never get arrogant in our various notions because things do change in the market and individual stocks are subject to many factors outside of our control.. So we try to -stay aware.

With all the above caveats and attempted prognostications, I will close this post. Stay tuned for more opining on the market and stocks to watch.

___________

ALL in my humble opinion, scroll down and read more.This site does NOT make Buy / Sell recommendations.
________

Stock Notes on : Defense of America, Tech stocks and Karma, ying yangs and Gold - (update 2/4/25)

 

 

 Market Talk

These are fast moving times.  One day a company is a pillar of Wall Street financial confidence, the next day something happens to make it a sudden stock that has people trampling on the way out.  Jensen Huang, Nvidia ceo , crashed the quantum stocks with him stating they are 20 years off.  That was like yelling fire in a movie movie house to traders/ investors of Quantum.  Today, some pundits are now taking a counter view of not so fast to dismiss quantum and perhaps Jensen is more likely protecting his turf of high powered and expensive Nvidia GPU processors

Then suddenly -  China's DeepSeek open-sourced their Large Language Model (LLM) with the argument that it supposedly reduces the very need for such high powered processors.  Yes indeed, Nvidia lost over $ 500 BILLION in market cap.  Did Jensen bring on what some may view as a "karmic ying- yang" to perceived demand of expensive Blackwell GPU processors?

Some pundits are countering with the AI centers will still need gads of processors, but perhaps not the latest expensive ones.  And what about memory chips?  They still need memory, so perhaps the makers of DRAM chips got punished a bit too much? Some of the large cap outfits like Microsoft are rethinking their expense budgets for AI data centers.  Perhaps the market is in a wait and see mode on some of the tech stocks as to earnings impact.

 So where do we stand and is the the dust settling?

In the few days since, the stocks are trying to comeback, including NVDA.  But the impact of better, faster and possibly cheaper notions of AI services are still being absorbed. However, some tech stocks are starting to rebound with mixed sentiments on various notions of the future.

At the end of every post here at the Jones report, the note about seeing how our views match up to the reality of the time.  Recent events show how fast things can change in a world where everything is relative to everything else in value.

What action YOU may take is up to YOU.  Here are a few more Stock notes from the desk of Spider J. Jones - (and pay no attention to the man behind the curtain...)

 

 Stock Talk

Kratos Defense & Security Solutions, Inc. (KTOS)

The need for a strong defense requires constant vigilance in America. Before reading further, be aware that some cold hard truths here may be disturbing. In some areas, America is behind our adversaries in the defense department.  Both China and Russia have the edge in hypersonic missiles.  This presents a potential dangerous situation in the balance of power that has kept the world from mutually assured destruction. When one crazy regime gets a notion they can take us out faster than we can likewise respond, it opens the door to a sneak attack.

Chinese hypersonic missiles can come in from the edge of outer space at 2 Miles Per SECOND. 

KTOS is smaller in size, not as well known as some of the big companies they work with - But,  KTOS is a key player in helping America stay safe in various areas of development.  Ranging from working as the lead on hypersonic test beds, rockets, subsonic and even stealth drones, autonomous travel, AI, 3 D printing, seamless satellite communications and integration of missile defense systems.  Some of the recent contract awards point to staying the course with KTOS. The need for Defense requires  constant vigilance in America.

The current view here remains:  some KTOS over time in a $ cost average mode. For us little people - Keep it simple, five or ten shares here and there.

 

Update: Another KTOS drone UTAP- 22 an interesting one to run some dd on.  It can carry a payload like the Mako series hypersonic missiles under development with Lockheed Martin.

 

Kinross Gold Corp (KGC) : Gold mining with steady earnings and a divy too.

Permian Resources (PR): With easing of past natural gas restrictions, a new renaissance back to cleaner and reliable energy that nat gas brings.  PR with Oil and Natural gas co in the Permian basin of America. Drill baby drill staying the course with some PR.

Altria Group, Inc (MO) :  Steady earnings and a near 8% high dividend to reinvest. The recent earnings report beat estimates with a buyback in process. There was a recent court decision that could adversely impact their importing of NJOY devices.  However an updated ACE-2 vape is in development and planned for manufacture in the US places  such as Richmond VA.   The view here is to hold some MO and watch developments.

Quantum stocks:   QBTS, RGTI, QUBT 

The ying-yang that Jensen of NVDA threw on the quantum world may have been overdone according to some pundits. These remain speculative. If trying to trade it may be more QBTS shares at half the sp, with some RGTI and QUBT as a side dish. BUT these are spec stocks to us little people, so NOT too much of any portfolio.  The Jones view is trading stocks and as "a trade" ?  who knows? the market will do what it will do- caution to the brave or fools depending on your own risk tolerance.

Update:  Watch BBAI

The AI company PLTR  made 20 cents eps and popped over $100.  This seems to have ignited more interest into BBAI in the $4's.   BBAI is not yet profitable, but the speculative nature of it maybe turning a profit with the recent government contracts is gaining market interest.  One wonders if BBAI is becoming a "meme" stock.  Some say that PLTR is a meme stock.  whatever!  It is what it is.   Take it for whatever may come - sometimes stocks go up just because relative to others, they appear to be in the sweet spot.  But the other side of a good run higher is insider trading, shorts and reality of actual earnings.  All in all?  BBAI seems like something to watch in the "spec stock" category, eg "a not too much stock", if any - pending your own risk tolerance.

Dry Powder. Maintain some dry powder.

 _________________

  If you dare ... Stay tuned and aware  ....

For now, we close by noting that any view on the market and stocks on any particular day may change in the future days to come. That is why we watch and see how our views match up with the reality of the time.  But trying to look ahead a few months into the future may be a way to do things.  If you think too deep about world events and the recent alliances forming, projecting ahead can be a dicey endeavor.  In all -  we use the word maybe "some", not "too much" and play it accordingly.  Remember, never get arrogant in our various notions because things do change in the market and individual stocks are subject to many factors outside of our control.. So we try to -stay aware.

With all the above caveats and attempted prognostications, I will close this post. Stay tuned for more opining on the market and stocks to watch.

___________

ALL in my humble opinion, scroll down and read more.This site does NOT make Buy / Sell recommendations.
________

China's DeepSeek LLM's threw cold water on some Tech stocks - yet others may be warm.

 

 

 Market Talk

 

Well folks, the signs were coming of a market correction in some of the high flyers.  Here at the Jones Report , the mode has been stay circumspect.  The other day, China by making a Large Language Model (LLM) available - threw cold water on the prevailing thesis that AI requires entirely new power plants dedicated to drive AI data centers.  Further, it tossed the notion on the table that high powered and expensive GPU's running in the data centers may not be needed as much as previously thought.  The market responded by punishing tech stocks fueled by the perception that  AI energy and processing needs can be reduced by more efficient deep learning LLMs software such as what China's DeepSeek is now making available .

There are a few cautions on using China's DeepSeek App.  One is that it relies on data within the Chinese internet ecosystem with their official government sources. However, the specific new LLM techniques advanced by intense Chinese government investment are appearing as a breakthrough.   The result was that American based companies, like Nvidia and Micron got a hard dose of cold water thrown on them as  their stocks took a very hard hit.  

In the few days since, the stocks are trying to comeback.  But the impact of better, faster, cheaper notions of AI services are still being absorbed.

For now, eyebrows are being raised by analysts, traders and investors in stocks.  Some stocks may yet be priced to perfection.

At the end of every post here at the Jones report, the note about seeing how our views match up to the reality of the time.  Recent events show how fast things can change in a world where everything is relative to everything else in value.

What action YOU may take is up to YOU.  As a few notes:

From a trader view-  sometimes it's right to lighten up in some stocks while the dust settles. Sometimes it's right to add on the dips of the stocks that are in the right spot of growing fundamentals  as well as sustainable growth.

From an investor view, sometimes it's right to just sit tight and do nothing.  However a trader would tell the investor a long can turn into a "good trade -gone bad".   A long would retort - "just wait - and look what the market has done over time".  To that all we will say is- it depends.  On Just WHAT, Spider J Jones? - you may be asking. The answer may be again - "It depends". and THAT is up to us to try to figure out.  Are we having fun yet?

and, there is NOTHING wrong with conserving some dry powder in times of serious uncertainty. 

 

 Stock Talk

While sometimes it seems like "risk off" in certain spec stocks , there are a few stocks here we hold some:

 Kratos Receives $1.45B MACH-TB 2.0 Contract

https://finance.yahoo.com/news/kratos-receives-1-45b-mach-130000098.html

  Stocks we stay the course in some.

Kratos Defense & Security Solutions, Inc. (KTOS)

KTOS was recently selected as the lead prime on a hypersonic test bed.  Subsequently,  a $34.8 M contract was awarded to continue mission integration and testing of KTOS drones to help maintain the balance of power with adversaries.

 

 

 

  The conviction level on  KTOS remains. 

 

Kinross Gold Corp (KGC) : Gold mining with steady earnings and a divy too.

Permian Resources (PR): With easing of past natural gas restrictions, a new renaissance back to cleaner and reliable energy that nat gas brings.  PR with Oil and Natural gas co in the Permian basin of America. Drill baby drill staying the course with some PR.

Altria Group, Inc (MO) :  Steady earnings and a near 8% high dividend to reinvest.

_________________

  If you dare ... Stay tuned and aware  ....

For now, we close by noting that any view on the market and stocks on any particular day may change in the future days to come. That is why we watch and see how our views match up with the reality of the time.  But trying to look ahead a few months into the future may be a way to do things.  If you think too deep about world events and the recent alliances forming, projecting ahead can be a dicey endeavor.  In all -  we use the word maybe "some", not "too much" and play it accordingly.  Remember, never get arrogant in our various notions because things do change in the market and individual stocks are subject to many factors outside of our control.. So we try to -stay aware.

With all the above caveats and attempted prognostications, I will close this post. Stay tuned for more opining on the market and stocks to watch.

___________

ALL in my humble opinion, scroll down and read more.This site does NOT make Buy / Sell recommendations.
________

More reasons - WHY WE Watch ... KTOS ...

 

 

 

Stock Talk

Sometimes it helps to actually see some of the progress happening around one that just seems right for America in these times - KTOS.

Kratos Defense & Security Solutions, Inc.(KTOS)

The following is a video of the Kratos XQ-58S Valkyrie:

https://www.youtube.com/watch?v=N61wXSarjIk

 " potential multi-Billion mission "

  notable contender --

https://www.youtube.com/watch?v=HCjlokSzlKY

and wait ....   Next Gen Kratos "Thanatos Stealth" ..

 

https://www.youtube.com/watch?v=IQ0YbHzJW3E

 https://theaviationist.com/2024/12/13/kratos-thanatos-ucav-has-flown-for-the-first-time/

If you dare ... Stay tuned as the world turns and ... aware  ...

Pray for the new administration that President Trump brings to America and may God Bless America to be made great again with insightful and humane leadership with liberty and justice for all.

For now, we close by noting that any view on the market and stocks on any particular day may change in the future days to come. That is why we watch and see how our views match up with the reality of the time.  But trying to look ahead a few months into the future may be a way to do things.  If you think too deep about world events and the recent alliances forming, projecting ahead can be a dicey endeavor.  In all -  we use the word maybe "some", not "too much" and play it accordingly.  Remember, never get arrogant in our various notions because things do change in the market and individual stocks are subject to many factors outside of our control.. So we try to -stay aware.

With all the above caveats and attempted prognostications, I will close this post. Stay tuned for more opining on the market and stocks to watch.

___________

ALL in my humble opinion, scroll down and read more.This site does NOT make Buy / Sell recommendations.
________