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Maxx’s Top Stock for October

7investing lead advisor Maxx Chatsko's October 2020 recommendation is an under-the-radar, small-cap living technologies company at the very beginning of its growth trajectory.

October 1, 2020

Advisor: Maxx Chatsko

Not every living technology is overengineered with machine learning algorithms, receives massive venture capital investments, and supported by an endorsement from Bill Gates. Sometimes the best antidote to the complexity of biology is simply, well, simplicity.

7investing Lead Advisor Maxx Chatsko’s recommendation for October 2020 is a beautiful illustration of keeping it simple while delivering market-dominating outcomes for patients and the healthcare system. The company has developed a superior, lifesaving product in a market that hasn’t seen much innovation in over 70 years. In fact, the product would be more accurately described as a technology platform. If successfully developed in adjacent markets, then the total addressable market opportunity is over $20 billion.

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Transcript

My top stock to buy this month is an under-the-radar, living technology company that has by far the best technology platform in its initial markets.

Hey everyone! I’m 7investing Lead Advisor Maxx Chatsko. Our team here at 7investing empowers you to build long-term wealth and invest in your future, by giving you our seven best stock market opportunities each month. We don't expect you to buy every pick, but there really is something for every kind of investor.

My pick this month is best-suited for investors who have a long-term mindset, who are seeking growth, and who have an appetite for risk. Now at first glance, this company isn’t very compelling. It received its first product approval in the last three years and the total market opportunity for this one indication is only $260 million. So, that’s not the peak sales estimate for this product; that’s the total addressable market for this indication.

So you might be saying, “Maxx, who cares? What are you even talking to us for?”

Okay, I’ll give you that. But hear me out.

This product isn’t actually a product — it’s actually a technology platform. And most investors, including on Wall Street, haven’t actually picked up on that yet. If the company earns supplemental approvals in its initial market, it could grow the total addressable market to about $1 billion. Still not a lot, I’ll give you that.

But there’s medium-term opportunity in an adjacent market that could double that opportunity. So investors would be looking at a $2 billion total addressable market opportunity just in the next three to five years.

But there’ actually longer-term opportunities that the company is beginning to explore in chronic conditions, gene therapies, and cell therapies — each of which could add multiple billions of dollars onto the total addressable market.

So that would get the total market, from everything I've said, to about $10 billion. That sounds a lot better than $260 million!

But there’s actually one more indication! That the company’s just beginning to explore, in another adjacent market, that could double that!

So this company’s “product” could be looking at a total addressable market opportunity of over $20 billion sometime this decade.

If you want to read all of the challenges, opportunities, and risks within my report, then you can go to 7investing.com. I actually went pretty deep into the analysis here because really no one is talking about this company, so I wanted to give you a big, meaty analysis for this technology platform.

We here at 7investing are empowering you to invest in your future. We’re 7investing.