Is Neubase Therapeutics (NBSE) Stock a Buy For 2021?

Alex Smith
·3 min read

Greenlight Capital Fund recently released its Q4 2020 Investor Letter, a copy of which you can download here. The fund posted a return of 5.2% in 2020, underperforming its benchmark, the S&P 500 Index which returned 18.4% in the same period. You should check out Greenlight Capital’s top 5 stock picks for investors to buy right now, which could be the biggest winners of 2021.

In the Q4 2020 Investor Letter, Greenlight Capital highlighted a few stocks and Neubase Therapeutics Inc. (NASDAQ:NBSE) is one of them. Neubase Therapeutics Inc. (NASDAQ:NBSE) develops its modular peptide-nucleic acid antisense oligonucleotide platform to address genetic diseases. In the last three months, Neubase Therapeutics Inc. (NASDAQ:NBSE) stock lost 0.1% and on January 21st it had a closing price of $8.65. Here is what Greenlight Capital said:

"One already-public investment that we have never discussed is NeuBase Therapeutics (NBSE), which we invested in a couple years ago at an average price of $3.96. The combination of the frothy environment for companies with large addressable markets and NBSE’s own pre-clinical progress leaves us surprised that NBSE hasn’t yet joined the “story stock” party. NBSE is a “platform” company with a technology called PATrOL, which develops highly targeted therapies that increase, decrease or change the protein function of genes. By addressing all of the causal mechanisms underlying rare and common diseases – including cancer – PATrOL consolidates the capabilities of highly-valued gene silencing, gene editing and gene replacement companies in a single unified platform. NBSE’s emerging therapies also feature the best precision in engaging misbehaving genes of any technology, which is critical to eliminating “off-target” engagement with healthy genes elsewhere in the genome and to ensuring well-tolerated medicines. The company’s laboratory successes over the last couple years suggest that PATrOL could be a breakthrough technology that addresses many types of diseases. Like DNMR, the addressable market is immense. While there is a long path from here to products on the market, NBSE’s current market capitalization of less than $200 million prices in little chance of success. We think the risk-reward is asymmetrical. NBSE ended the year at $6.99."

Countries With Highest Medical Research Spending
Countries With Highest Medical Research Spending

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In Q3 2020, the number of bullish hedge fund positions on Neubase Therapeutics Inc. (NASDAQ:NBSE) stock decreased by about 33% from the previous quarter (see the chart here), so a number of other hedge fund managers don't believe in NBSE's growth potential. Our calculations showed that Neubase Therapeutics Inc. (NASDAQ:NBSE) isn't ranked among the 30 most popular stocks among hedge funds.

The top 10 stocks among hedge funds returned 216% since the end of 2014 and outperformed the S&P 500 Index ETFs by more than 121 percentage points. We know it sounds unbelievable. You have been dismissing our articles about top hedge fund stocks mostly because you were fed biased information by other media outlets about hedge funds' poor performance. You could have doubled the size of your nest egg by investing in the top hedge fund stocks instead of dumb S&P 500 ETFs. Below you can watch our video about the top 5 hedge fund stocks right now. All of these stocks had positive returns in 2020.

Video: Top 5 Stocks Among Hedge Funds

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Disclosure: None. This article is originally published at Insider Monkey.