Busy week for me…and it's only Monday! But still, I wanted to give you a quick update
on two stocks we’ve been watching closely on this channel. First, we’ve now had 2
days of trading of Albertsons and I wanted to provide some initial thoughts on where
it’s trading and compare its performance with Agora’s IPO which happened on the same
day. Secondly, I want to talk about Novavax having another big day of gains and what was
behind it…let’s get into it. Welcome to Healthy, Wealthy, and Wise where
we talk about little things that can lead to big improvements in our financial and physical
health. The channel has been growing nicely over the past couple of weeks and I want to
thank all of my subscribers for watching, liking, and commenting on the videos—it’s
so much appreciated by me! And if you’re new to the channel or haven’t yet subscribed,
we’d love to have you join our growing community…after-all, it’s free and it’ll make sure you don’t
miss any upcoming videos. Alright…2 days in the books for Albertsons
and the stock is trading just a little below the IPO set price of $16. How many of you
have asked, ‘what gives?’ Or asked ‘why didn’t it pop like Agora did by soaring
145% for its debut on the same day?’ Well, I think there are a couple of factors to keep
in mind…first of all, both stocks debuted on Friday which was a bad day for the markets
overall with all of the major US indexes down about two and a half percent, and that environment
is going to put pressure on stocks. Much of the market being down was related to states
pausing their reopenings. On one hand, you might think that would be good for grocery
store stocks, but on the other, there was a sense of disappointment for Albertsons’
IPO price being discounted about 16% from where they expected, with it coming in at
$16 vs. the estimate of between $18 and $20. So Albertsons ended down that first day. Yet,
even with the market being down, Agora was up big. We just have to remember that it's
comparing apples and oranges. Whereas Albertsons is an established company in a competitive
industry with tight margins and a lower rate of growth expectations, Agora is a tech company
looking to grow big with products that can excel in a stay at home economy. And as you
know, tech is exciting because of the growth and performance…grocery store companies?
Not so much. Now that doesn’t mean that Albertsons isn’t a good company, it just
means that it’s a company that will move on news and financials, it’s not going to
move on expectations of world altering technology. And the only news so far for Albertsons was
an IPO price that disappointed. If there is anything I would say, is that
if you believe in the company, you should feel good that the price over 2 days held
within striking distance of the IPO price of $16. If you thought you were going to get
a quick pop of the stock, after-all, newly listed companies have gained an average of
20% on their first day of trading in 2020, you’re probably disappointed. Most of the
reasons why it didn’t pop are things we’ve talked about in my previous videos over the
past week and a half—so if you haven’t seen them, check them out. But again, if you
believe in the company and what they’re doing…and they keep improving their operating
efficiencies, they should be just fine. Next up…Novavax! Whereas with Albertsons
it might be slow and steady gains, with Novavax, they just keep pushing and pushing! And you
keep wondering if they will run out of steam as they are now up over 1800% for the year!
Today, more news keeps coming out…in fact 3 big stories. And those 3 stories drove the
stock up another 8%. So what were they? Well, first of all, the company is showing
continued, increased commitment in growing their leadership team by making 3 promotions
and appointing a new executive vice president for CMC or chemistry, manufacturing, and control.
Like the new Chief medical officer they recently appointed, this person has an extensive history
in the industry. And when you think about what the CMC role oversees, you can see that
the company is planning on having some successful products get to market.
The second piece of news is that an analyst came out and significantly upped his price
target from $74 dollars to $106. Some of the reasons he stated were the increasing visibility
of the pandemic, infrastructure investments for manufacturing and distribution, the recent
additions to the management team, and the potential for additional funding to go along
with the already obtained CEPI and Department of Defense money that we’ve talked about
in previous videos. And finally, yet another analyst also moved
his target up…this time from $50 up to $101. While sharing the same reason of funding and
how it takes the financial risk for developing a pandemic vaccine out of the equation, he
also talked about how Novavax would be capable of competing against the larger companies
making a pandemic vaccine and also earn over 400 million dollars in annual sales. He stated
that it’s likely that booster vaccines would be needed as the virus mutates, which would
result in continuous revenue. So now, we’ve had 3 analysts significantly
up their price targets over the past week and as we mentioned last week, things like
this move the needle. And both days after guidance came out, the share price jumped
up big. So unlike Albertsons who has not had any news out there, Novavax has a lot coming
out…and it’s all positive. And by the way, didn’t I tell you to expect a lot more
news and publicity coming out after the appointment of a senior vice president for investor relations?
That definitely seems to be coming to fruition. So when evaluating Albertsons and Novavax,
again, apples to oranges. But I think it’s interesting to look at the reasons as to why
a stock moves or doesn’t. And these 2 companies provide a good example of that.
So what are your thoughts on where the companies are trading right now? We’ve had a lot of
good discussion as of late, so I hope we can keep it up by sharing your thoughts in the
comments. I really hope you enjoyed this video, and if you did, please hit that like button—it
really does help the channel and it lets me know that you enjoy watching videos like this.
And as always, I hope that we can all learn from each other on how to take little, easy
steps in making big improvements in our lives. Thank you again for watching, and until next
time, have a great day!