Clovis: Second Wave To Catapult Shares Higher

Summary

• Riding robust fundamental improvements, Clovis Oncology is enjoying a 145.6% gain in the past 20-days.
• Misunderstood by the market as Myovant's competition, but Clovis has its own niche.
• Though you might not believe it, growth companies that are successfully turning around tend to yield multiple fold returns.

How good are the company's cost analysis and accounting controls? - Philip Fisher

For most of 2019, the China Trade War and drug pricing concerns clobbered many fundamentally strong stocks. In the thick of these market clouds, a downpour of negative sentiments washed away the market cap of most bioscience equities. As my probability analysis revealed, there are signs of a market upturn in the making. As such, I believe that certain stocks will deliver extremely robust returns going forward.

A prime example of the aforesaid phenomenon is Clovis Oncology (CLVS). As you can see in the chart below, Clovis shares traded on a steep downtrend this year. Hence, the stock's market valuation became greatly disconnected from its true worth (i.e. intrinsic value). Since my instinct proved correct, Clovis shareholders have enjoyed a vigorous rally. However, I believe that the recent rallies are only the first waves of rebound. In this article, I'll present another fundamental update on Clovis. Moreover, I'll compare Clovis to a similar company dubbed

Myovant Sciences

(MYOV). That way, you'll have a better understanding of what will happen to these growth stocks.

Figure 1: Clovis Oncology chart (Source: StockCharts)

About The Company

As usual, I'll feature a brief corporate overview for new investors. If you are familiar with the firm, I suggest that you skip to the subsequent section. Operating out of Boulder, Colorado, Clovis is focused on the innovation and commercialization of therapeutics to serve the unmet needs in various oncology conditions. They include ovarian, prostate, breast, and bladder cancers.

April 2018 marked a historic day for Clovis as the lead molecule, rucaparib (Rubraca) was FDA approved. As an oral, small-molecule inhibitor of poly (ADP-ribose) polymerase ("PARP") 1, 2, and 3, Rubraca is marketed as second-line maintenance for recurrent ovarian cancer.

Because

Analyst’s Disclosure:I am/we are long CLVS. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

As a medical doctor/market expert, I’m not a registered investment advisor. Despite that I strive to provide the most accurate information, I neither guarantee the accuracy nor timeliness. Past performance does NOT guarantee future results. I reserve the right to make any investment decision for myself and my affiliates pertaining to any security without notification except where it is required by law. I am also NOT responsible for the actions of my affiliates. The thesis that I presented may change anytime due to the changing nature of information itself. Investment in stocks and options can result in a loss of capital. The information presented should NOT be construed as a recommendation to buy or sell any form of security. My articles are best utilized as educational and informational materials to assist investors in your own due diligence process. That said, you are expected to perform your own due diligence and take responsibility for your actions. You should also consult with your own financial advisor for specific guidance, as financial circumstances are individualized.