Lemonade Inc

Lemonade Inc (NYSE: LMND) provides insurance services related to home, pet, and life insurance. The Company is presently available in the United States, the Netherlands, Germany, and France.

Investment Rationale – WATCH at USD 80.90

• In Q2 FY21, Lemonade reported a decline in online insurer’s sales and therefore, losses widened compared to the same quarter the last year.
• During Q2 FY21, customer count surged 29%, reflecting higher average policy values.
• The resurgence of Covid-19 cases with delta variant can create operational difficulties and cause a shortage of labour.
• From a technical standpoint, the current market price is sustaining below the 20-day EMA (USD 88.73), reflecting a bearish price momentum.
• In the last six months, LMND’s s price has fallen around 42.94%, reflecting significant underperformance against the benchmark, NYSE index.

One Year Share Price Chart

 (Data Source: Refinitiv, Analysis by Kalkine Group)

Conclusion

Based on the worsened losses, gloomy outlook, macroeconomic instabilities, and bearish price trend, we have given a “WATCH” recommendation on Lemonade Inc at the closing market price of USD 80.90 (as of 6 August 2021), while we look forward to reviewing how the Company will minimize its net losses.

Epizyme Inc

Epizyme Inc (Nasdaq: EPZM) is a commercial stage biopharmaceutical entity, focusing on treating cancer and other serious diseases through novel epigenetic medicines.

Investment Highlights – WATCH at USD 6.47

• On 9 August 2021, Epizyme announced that its Chief Executive Officer, Robert Bazemore decided to step down from his position; however, he will continue to serve as an advisor to the Board for the next twelve months to ensure a smooth transition.
• In Q2 FY21’s business update (for the quarter ended 30 June 2021), the Company reported
  • Reduced cash position of US$244.0 million as of 30 June 2021 from US$298.9 million at the end of Q1 FY21.
  • Net loss widened for the second quarter to US$64.4 million from US$58.5 million in Q2 FY20.
• On 8 August 2021, Epizyme announced a collaboration with HUTCHMED, to commercialize TAZVERIK® in Greater China.
• The speculations regarding the Federal Reserve reducing its pandemic-era stimulus, can create significant market volatility.
• From a technical standpoint, the current market price is sustaining below the 20-day EMA (USD 6.99), reflecting a bearish price momentum.
• In the last year, EPZM' s price has fallen around 49.59%, reflecting significant underperformance against the benchmark Nasdaq index.

Share Price Chart

 (Data Source: REFINITIV, Analysis done by Kalkine Group)

Conclusion

Based on the weak fundamentals, bearish price momentum, and macroeconomic uncertainty, we have given a “WATCH” stance on Epizyme Inc at the closing price of USD 6.47 (as on 6 August 2021), while we look forward to reviewing how the Company operates in the near term.

Karyopharm Therapeutics Inc

Karyopharm Therapeutics Inc (Nasdaq: KPTI) is a pharmaceutical entity, focusing on treating patients with cancer and other serious diseases.   

Investment Rationale – WATCH at USD 5.52

• On 5 August 2021, KPTI unveiled its Q2 FY21 results for the three months ended 30 June 2021, and reported
  • A decline in total revenue and operating expenses year-on-year; however, net loss significant widened from US$46.4 million in Q2 FY20 to US$53.6 million in Q2 FY21.
  • The cash position also reduced to US$239.3 million at the end of Q2 FY21, from US$276.7 million as of 31 December 2020.
• During H1 FY21, the Company has secured additional funding of US$60 million, expanded global access to XPOVIO, and acquired investigational Interleukin-12 program from Neumedicines Inc. It should help the Company in expanding its capabilities.
• From a technical standpoint, the current market price is sustaining below the 20-day EMA (USD 8.27), reflecting a bearish price momentum.
• In last 1-year, KPTI’s s price has fallen ~63.80%, reflecting significant underperformance against the benchmark, Nasdaq index.

Share Price Chart

 (Data Source: REFINITIV, Analysis done by Kalkine Group)

Conclusion

Based on the weak fundamentals, reduced liquidity, and bearish price momentum, we have given a “WATCH” stance on Karyopharm Therapeutics Inc at the closing price of USD 5.52 (as on 6 August 2021), while we look forward to monitoring how the Covid-19 pandemic will impact the progress on its pipeline initiatives.

Liminal BioSciences Inc

Liminal BioSciences Inc (Nasdaq: LMNL) is a clinical-stage biopharmaceutical entity focusing on commercializing novel treatments for patients suffering from diseases with high unmet medical needs.

Investment Rationale – WATCH at USD 2.86

• In Q1 FY21, the Company didn’t generate any revenue, and it reported a net loss of US$20.9 million. Also, there was a substantial increase in net finance cost from US$1.5 million in Q1 FY20 to US$2.4 million in Q1 FY21, due to the long-term debt issuances in Q3 FY20.
• On 9 July 2021, LMNL announced the disinvestment of its plasma-derived therapeutics manufacturing subsidiary to Kedrion S.p.A. for the consideration of US$5 million.
• From a technical standpoint, the current market price is sustaining below the 20-day EMA (USD 3.19), reflecting a bearish price momentum.
• In the last twelve months, LMNL’s s price has fallen around 84.19%, reflecting significant underperformance against the Nasdaq index benchmark.

One Year Share Price Chart

   (Data Source: Refinitiv, Analysis by Kalkine Group)

Conclusion

Based on the absence of revenue, history of net losses, bearish price momentum, and challenging business environment, we have given a “WATCH” recommendation on Liminal BioSciences Inc at the closing market price of USD 2.86 (as of 6 August 2021), while we look forward to reviewing how the Company will navigate through ongoing Covid-19 pandemic induced challenges.

Greenlane Holdings Inc

Greenlane Holdings Inc (Nasdaq: GNLN) deals in premium cannabis accessories, specialty vaporization products, and child-resistant packaging through online e-Commerce platform as well direct to consumers.

On 17 August 2021, GNLN expects to release its Q2 FY21 results.

Investment Highlights – WATCH at USD 3.09

• In the last financial update for Q1 FY21, sales slightly increased by 0.6% year-on-year; however, and net loss was reduced by 53.9% year-on-year.
• As of 31 March 2021, cash balance reflected a decrease of around US$30.4 million from the closing position of FY20.
• From a technical standpoint, the current market price is sustaining below the 20-day EMA (USD 3.53), reflecting a bearish price momentum.
• In the last year, GNLN’s s price has fallen around 13.45%, reflecting significant underperformance against the benchmark Nasdaq index.

Share Price Chart

 (Data Source: REFINITIV, Analysis done by Kalkine Group)

Conclusion

Based on the weak fundamentals, unfavourable technical stance, and macroeconomic uncertainty, we have given a “WATCH” stance on Greenlane Holdings Inc at the closing price of USD 3.09 (as on 6 August 2021), while we look forward to reviewing how the Q2 FY21 results will be.   

*The reference data in this report has been partly sourced from REFINITIV.

Disclaimer

The advice given by Kalkine Canada Advisory Services Inc. and provided on this website is general information only and it does not take into account your investment objectives, financial situation and the particular needs of any particular person. You should therefore consider whether the advice is appropriate to your investment objectives, financial situation and needs before acting upon it. You should seek advice from a financial adviser, stockbroker or other professional (including taxation and legal advice) as necessary before acting on any advice. Not all investments are appropriate for all people. The website www.kalkine.ca is published by Kalkine Canada Advisory Services Inc. The link to our Terms & Conditions has been provided please go through them. On the date of publishing this report (mentioned on the website), employees and/or associates of Kalkine do not hold positions in any of the stocks covered on the website. These stocks can change any time and readers of the reports should not consider these stocks as advice or recommendations later.