This Biotech Has a Tech Company’s DNA

Alpesh Patel|February 20, 2025

Unicorns may be a myth, but today’s stock pick is real.

Now, biotech companies aren’t for the faint of heart.

These stocks are notoriously volatile and hard for the average investor to understand.

Lucky for you, my hedge fund and I have a lot of experience in this area.

So when my GVI rating system zeroed in on this biotech gem, I knew I had something special.

Not only does the company generate cash AND profits, but it’s both a biotech and technology company rolled into one.

Tune in to today’s Dealmaker’s Diary to see what makes this stock so exciting. Don’t miss these critical insights… NOW.

This is the kind of research my clients pay thousands for… but you get it for FREE as a Total Wealth subscriber.

Click on the image below to dive in.

Transcript

Right, people. Let’s make some money.

What have I got for you in my stock of the week Dealmaker Diary.

I’ve got Harmony Biosciences (HRMY).

Why would I like yet another biosciences company on Nasdaq?

What’s so different about this one when they’re all called biosciences?

Well, it’s the financials as ever. It’s the numbers when you dig deep into the P&L, the balance sheet, and the cash flow statements.

Revenues are a bit small. That’s fine.

They’ve had a year-on-year increase ­— a substantial year on year increase.

I like that.

Price earnings, 18.6x, relatively low for what is essentially a tech company and certainly well below the industry median.

So, a bump up on the price would see a little bit of a catch up. And you’d hardly blink or call it expensive if it did move up.

Value growth rating, my proprietary indicator based upon the valuation of a company and its relative weighting to revenue growth, profit growth, dividend yields…

We’ve got an eight.

Anything with a seven or higher generally means it’s a good company.

Forecast price to earnings, you’re paying $11.5 for every future dollar of profits. That’s cheap, for, as I say, bioscience or tech company.

CROCI, cash return capital invested…

Unusually, for a medical company or a medtech, it is churning out cash for the capital that it’s investing.

Usually, it’s the other way around. They sink a ton of capital and generate hardly any cash.

34.8x (CROCI), that Goldman Sachs wealth management measure. Anything above 10%-12% is pretty good.

This one, 34.8x, is knocking the ball, out of the town. Never mind the park.

Sortino ratio, 0.14x, a little bit low. I can live with it.

21%volatility I can live with as well.

Harmony Biosciences.

So, there is the projection.

What’s that based on?

Well, it’s based on it resuming how it did in 2021-2022—that outward trend.

You can see it’s volatile. So if you don’t like volatility, you won’t like this.

I wish it would move up that smoothly.

Unlikely to be a smooth straight line, but that’s the projection that I’ve got forward for it based, as I said, on historic growth.

It seems to have bottomed out anyway at $27, and is showing that any breakout above the $40 mark, or really $38-$20., should see next stop at 60% (higher).

Okay.

(The stock is) fueled also by discount cash flow or suggesting undervalued by 85.7% discount cash flow can be a bit volatile.

But nevertheless, that’s pretty impressive to bolster up the other points that I made about why the company looks good.

I hope you enjoyed that.

I hope it was educational and informative.

Well, of course, it was and a little bit entertaining and put a smile on your face.

Remember, behind all the wry remarks, there’s a ton of research which my team at the hedge fund goes through for me and produce a lot of data for me to go through.

You should see the pile of stocks that I don’t put in front of you, which they thought were okay.

I like this one.

Thank you very much.