BE and BEAM sport long-term tailwinds
Beam Therapeutics (BEAM)
Gene editing firm Beam Therapeutics is developing its own pipeline with base editing as
its foundation technology, a technique that changes a single DNA or RNA base without
cutting the DNA strand. The company ended the second quarter with $1 billion in cash,
with an expected operating runway into 2027.
Beam recently received new drug clearance for its first in-vivo regulatory filing, which is a way to make genetic modifications via nanoparticles injected into the body, as opposed to ex-vivo, which requires DNA modifications outside the body.
Keep an eye on the first patient dosed in phase 1 and 2 trials of BEAM-302 in Alpha-1
Antitrypsin Deficiency (AATD),with initial clinical data expected in 2025.Plus,new
players in the biotech space could license BEAM's base-editing tech which could benefit
all parties involved, especially the underlying shares.
Bloom Energy (BE)
Back in November, fuel cell company Bloom Energy signed an agreement with American
Electric Power (AEP) to provide power solutions to data centers. Since its late-November highs, BE has pulled back to its 50% year-to-date level, an area that coincides with its $5 billion valuation. This pullback also aligned with the candle-high following the AEP announcement, as well as its ascending 20-day moving average. With technical support lining up, a next leg higher could be imminent in 2025.
BE is the perfect contrarian target; a relative strength leader with plenty of built-in
skepticism. Of the 22 brokerages covering the stock, 11 maintain "hold" ratings. Short interest, meanwhile, is at all-time highs and increased 16% in the last 30 days. With
bearish bets up 48% in 2024 and a healthy 23% of the equity's total available float now
sold short, there's ample room for a short squeeze.
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