Is Avid Bioservices (CDMO) Stock a Buy For 2021?
Laughing Water Capital recently released its Q4 2020 Investor Letter, a copy of which you can download here. The fund posted a return of 28.2% for the quarter (net of fees), outperforming their benchmark, the S&P 500 Index which returned 12.2% in the same quarter. You should check out Laughing Water Capital's top 5 stock picks for investors to buy right now, which could be the biggest winners of this year.
In the Q4 2020 Investor Letter, Laughing Water Capital highlighted a few stocks and Avid Bioservices Inc. (NASDAQ:CDMO) is one of them. Avid Bioservices Inc. (NASDAQ:CDMO) is a biotechnology company. In the last three months, Avid Bioservices Inc. (NASDAQ:CDMO) stock gained 81.7% and on January 25th it had a closing price of $14.70. Here is what Laughing Water Capital said:
"Avid Bioservices (CDMO) – Long time holding CDMO is entering the next phase of its growth following a recent capital raise that will help finance the expansion of the company’s drug manufacturing facilities. I expect that the business will remain lumpy, and the stock will have its ups and downs, but the industry remains supply constrained while demand continues to grow, creating an attractive backdrop for continued success. Specific to CDMO, examining the pipelines of the company’s key customers suggests continued above industry growth levels."
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Laughing Water Capital has been a long time Avid Bioservices Inc. (NASDAQ:CDMO) bull. In September 2020, we shared Laughing Water Capital’s Q2 2019 bullish CDMO's thesis in this article.
In Q3 2020, the number of bullish hedge fund positions on Avid Bioservices Inc. (NASDAQ:CDMO) stock increased by about 7% from the previous quarter (see the chart here), so a number of other hedge fund managers believe in CDMO's growth potential. Our calculations showed that Avid Bioservices Inc. (NASDAQ:CDMO) isn't ranked among the 30 most popular stocks among hedge funds.
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Video: Top 5 Stocks Among Hedge Funds
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Disclosure: None. This article is originally published at Insider Monkey.
