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F1 Postpones Start of 2020 Season Until June; Projecting an 18-Race Season

Neil Macker, CFA (neil.macker@morningstar.com)
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Cathie Wood first initiated a position in Sea Limited during the final quarter of 2019, and she has only continued to add her stake over time. See more from BenzingaClick here for options trades from Benzinga84% Of Warren Buffett's Portfolio In 2021 Is In These 3 Categories© 2021 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.

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Farfetch, an online clothing retailer with an international profile – headquarters in London, offices in New York, LA, Tokyo, Shanghai, Portugal, and Brazil – shows both trends. The company’s gains in 2H20 pushed its market cap well above $16 billion, while recent stressors have forced the stock price down by 38% since its February peak. Farfetch has a solid foundation, based on more than 3 million active customers and over 1,300 sellers on the platform. The company saw, in 2020, over $3.2 billion gross merchandise offered through the site, making it the top global platform for buying luxury products online. The gross merchandise value was up 49% from the prior year. At the top line, Farfetch’s 2020 revenues were up 64% year-over-year, to $1.7 billion, with $540 million, about one-third of that total, coming in Q4. Covering Farfetch for J.P. Morgan, 5-star analyst Doug Anmuth notes that the recent weakness has created a “compelling buying opportunity.” This opportunity is based on: "1) FTCH’s position as the leading global marketplace in the $300B luxury market that is rapidly shifting online; 2) FTCH’s well-established e-concessions model that attracts more brands & inventory to the platform; and 3) FTCH’s strong position in the high growth China luxury market through both the FTCH app & recently launched store on Alibaba’s Tmall Luxury Pavilion. FTCH should also see its first full year of EBITDA profit in 2021, with a path to greater scalability over time driven by leverage in both Gross Margin and G&A.” In line with this bullish outlook, Anmuth rates FTCH an Overweight (i.e. Buy), with a $72 price target suggesting a one-year upside of 58%. (To watch Anmuth’s track record, click here) Overall, the Strong Buy consensus rating on Farfetch is based on 7 Buy reviews, which offset a single Hold. The stock’s share price is $45.50, and the average target of $74.38 implies ~63% upside for the next 12 months. (See FTCH stock analysis on TipRanks) Oncternal Therapeutics (ONCT) The next stock on our list, Oncternal, is a clinical stage biopharma company focused on oncology. The company is working to develop new treatments for cancers with unmet critical needs. The company’s pipeline has three drug candidate, in various stages of development from preclinical to a Phase 2 trial. The lead candidate in the pipeline, cirmtuzumab, is the one undergoing that trial. The drug is a monoclonal antibody that inhibits the ROR1 receptor in certain hematologic cancers. In December, the company released interim Phase 1/2 results of cirmtuzumab’s efficacy in combination with ibrutinib. The combination compared favorably to ibrutinib as a single agent. Cirmtuzumab is also in a Phase 1 clinical study as a treatment agent for breast cancer; updated results released earlier this month showed that a partial response or a stable disease in half or more of the patient cohort. Despite the positive clinical results, Oncternal’s stock tumbled 30% this month. According to Northland analyst Carl Bynes, in a note titled ‘Weakness Creates Buying Opportunity,’ investors should take this time to buy in. “We view shares of ONCT as an essential holding for those investing in the oncology segment, with multiple clinical updates anticipated in 2Q21 serving as MAJOR catalysts. We believe cirmtuzumab (anti-ROR1 mAb) is positioned to become a breakthrough therapeutic for treating MCL and other ROR1-expressing malignancies. Further, we anticipate first-in-human dosing of its ROR1 CAR-T candidate in 2H21 in China," Bynes opined. Congruent with his upbeat outlook, Bynes rates ONCT an Outperform (i.e. Buy), and his $21 price target implies an impressive upside of 265% in the year ahead. (To watch Bynes’ track record, click here) Wall Street has taken a unanimous stance on ONCT, giving the stock 4 recent positive reviews for a Strong Buy consensus rating. The average price target, at $15.50, indicates ~170% upside from the share price of $5.75. (See ONCT stock analysis on TipRanks) BioLife Solutions (BLFS) Drug companies can’t do their jobs without support services – or the products supplied by companies like BioLife. The company supplies cell and gene therapy bioproduction tools, including cryopreservation storage units, biopreservation for blood storage, hypothermic storage and shipping media, and, importantly, cell thawing media allowing use of biosamples after cryopreservation. BioLife’s quarterly top line has shown sequential gains in both Q3 and Q4. The third quarter gain was 14%, and increased to 30% in Q4. The Q4 revenue, at $14.7 million, was up 78% yoy. For the full year, the top line hit $48.1 million, a yoy gain of 76%. The company has provided 2021 revenue guidance in the range of $101 million to $110 million. With this in the background, we can look at the share performance. BLFS shares peaked in December, after rising 176% in 12 months. Since then, the shares have retreated 31%. Carl Bynes, of Northland Capital, sees that share retreat, again, as an ‘in’ for investors. "We view the recent pullback in BioLife shares as a buying opportunity. BioLife, in our view, is uniquely positioned to emerge as the leading consolidator of the enabling technologies segment supporting the high-growth cell and gene therapy sector. The Co., through internal development and acquisitions, has amassed a comprehensive breadth of product and service offerings that support cell and gene therapy applications from development through commercialization,” Bynes noted. To this end, Bynes rates BioLife an Outperform (i.e. Buy), along with a $55 price target to indicate a 12-month potential upside of ~75%. (To watch Bynes’ track record, click here) Looking at the consensus breakdown, Wall Street takes a bullish stance on BLFS. 6 Buys and 1 Hold issued over the previous three months make the stock a ‘Strong Buy.' BLFS shares are selling for $31.51, and their $55.83 average price target suggests a 77% upside. (See BLFS stock analysis on TipRanks) To find good ideas for beaten-down stocks trading at attractive valuations, visit TipRanks’ Best Stocks to Buy, a newly launched tool that unites all of TipRanks’ equity insights. Disclaimer: The opinions expressed in this article are solely those of the featured analysts. The content is intended to be used for informational purposes only. It is very important to do your own analysis before making any investment.

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  • China ready with 'precautionary measures' to stop foreign traders causing market volatility, regulator says

    China will suspend the ability of foreign investors to trade if they cause serious market volatility through massive capital flows in a short period of time, a senior Chinese regulatory official has said. "Many people are asking whether foreign ownership will affect the stability of our stock market," said Fang Xinghai, vice-chairman of the China Securities Regulatory Commission, at the Boao Forum for Asia on Monday. "What if massive amounts of foreign capital come in and go out? I can tell you that we will take precautionary measures." Do you have questions about the biggest topics and trends from around the world? Get the answers with SCMP Knowledge, our new platform of curated content with explainers, FAQs, analyses and infographics brought to you by our award-winning team. Fang Xinghai, vice-chairman of the China Securities Regulatory Commission, says regulators are wary about the potential for market disruption by foreign hedge funds. Photo: Simon Song alt=Fang Xinghai, vice-chairman of the China Securities Regulatory Commission, says regulators are wary about the potential for market disruption by foreign hedge funds. Photo: Simon Song> "We had a provision when we designed the Stock Connect that if a foreign investor comes in and causes significant volatility in the stock market, we can temporarily stop it from trading," he said. Stock Connect has a daily quota restricting the maximum net value of cross-boundary trading flows, with daily "northbound" flows into China limited to 52 billion yuan (US$7.9 billion) and "southbound" flows to Hong Kong capped at 42 billion yuan. Besides Stock Connect, foreigners can also invest in China A-shares via the Qualified Foreign Institutional Investor and RMB Qualified Foreign Institutional Investor programmes. Fang's comments come as foreign investors have increased their purchases of Chinese stocks, encouraged by liberalised rules last year that gave more leeway to overseas funds to repatriate their dividends and capital gains from the world's second-largest stock market. Following the easing of rules last year, a survey by Standard Chartered released last month showed 59 per cent of respondents would increase their allocations of Chinese assets in the coming 12 months. Foreign investors bought a net 16.3 billion yuan worth of Chinese A-shares via Stock Connect on Monday, the second highest net purchases this year, after having bought a net 24.7 billion yuan last week, exceeding the 18.7 billion for the month of March as a whole, according to the official Securities Daily. Driven by declining short-term interest rates and upbeat corporate earnings, the A-share market is expected to "continue to rebound", said Southwestern Securities in a note. But if capital was to start flowing out on a massive scale, there is a risk the Chinese currency would depreciate and trigger further capital outflows. This happened on a modest scale in February and March, with the yuan's exchange rate against the US dollar dropping more than 1 per cent as a result. Last month, FTSE Russell, the global index, data and analytics provider, added China A-Shares to the FTSE MPF Index Series, the core equity benchmarks used by the Mandatory Provident Fund industry. China's domestic equities had already joined MSCI's benchmark indexes in 2017. At the end of last month, foreigners owned 5 per cent of Chinese A-shares, still a "relatively low" level, said Fang. "With more foreign capital coming in recent years, our stock market has been running much smoother, as foreign capital is playing a more important role in market pricing ... We will continue to create conditions to lure more foreign investments," said Fang. Chinese authorities have a "clear view" about the priorities of foreign investors and are not worried about individual investors, whose proportion of overall stock ownership is very small and will not affect the financial stability, Fang said. The country also welcomes foreign mutual funds, pension funds and insurance companies, which have the highest proportion of A-shares among foreign investors. But Chinese regulators are wary about the potential for market disruption by foreign hedge funds and so their operations will be watched closely, said Fang. "Once massive volatility is caused by some investors, their trading will be suspended to prevent further volatility," he said. This article originally appeared in the South China Morning Post (SCMP), the most authoritative voice reporting on China and Asia for more than a century. For more SCMP stories, please explore the SCMP app or visit the SCMP's Facebook and Twitter pages. Copyright © 2021 South China Morning Post Publishers Ltd. All rights reserved. Copyright (c) 2021. South China Morning Post Publishers Ltd. All rights reserved.