Latest news with #Thomas Fuller
Forbes
21-07-2025
- Business
- Forbes
Sarepta Therapeutics: Why Is SRPT Stock Crashing?
CANADA - 2025/06/08: In this photo illustration, the Sarepta Therapeutics logo is seen displayed on ... More a smartphone screen. (Photo Illustration by Thomas Fuller/SOPA Images/LightRocket via Getty Images) Sarepta Therapeutics has plunged to new lows below $13, down over 35% in recent trading, after rejecting the FDA's request to voluntarily halt all shipments of Elevidys following a third death tied to the gene therapy. Just days after our previous analyses highlighted the company's apparent undervaluation following its restructuring, its defiant stance has now triggered fresh investor concerns, validating the regulatory risks associated with biotech stocks. The FDA has placed multiple investigational gene therapy clinical trials on hold, signaling broader platform concerns. With Elevidys generating 43% of Sarepta's total revenues and holding traditional approval since June 2024 for ambulatory patients, any regulatory challenge poses existential threats to the company. FDA Commissioner Marty Makary's statement that he's "taking a hard look" at whether Elevidys should remain on the market suggests potential forced withdrawal if voluntary compliance fails. The recent $400 million restructuring cost savings appear insufficient against potential revenue loss from broader market restrictions. Sarepta's confrontational approach toward federal regulators is creating unprecedented uncertainty, even for biotech investors who typically have a high tolerance for risk. This unwillingness to proactively address safety concerns demonstrates poor risk management, especially at a time when regulatory goodwill is crucial. Situations like this underscore our consistent message about the inherent risks of investing in single stocks and highlight why professionally managed portfolios are often a better choice. In fact, regulatory risk is just a small part of the risk assessment framework we apply while constructing the Trefis High Quality (HQ) Portfolio which, with a collection of 30 stocks, has a track record of comfortably outperforming the S&P 500 over the last 4-year period. Why is that? As a group, HQ Portfolio stocks provided better returns with less risk versus the benchmark index; less of a roller-coaster ride as evident in HQ Portfolio performance metrics.
Forbes
14-07-2025
- Business
- Forbes
Why Did MP Materials Stock Jump 50% In A Single Day?
CANADA - 2025/06/13: In this photo illustration, the MP Materials logo is seen displayed on a ... More smartphone screen. (Photo Illustration by Thomas Fuller/SOPA Images/LightRocket via Getty Images) MP Materials Corp (NYSE:MP) has just experienced a significant breakthrough on Wall Street, and it can be attributed to one word: defense. In a decisive action to bolster the U.S. supply chain for rare earth magnets—essential elements for fighter jets, missiles, and electric vehicles—the Pentagon revealed a $400 million investment in MP Materials. This single move caused MP's stock price to surge by over 50% in a single day, reaching a multi-year maximum. Although MP stock has faced fluctuations, if you are looking for growth with less volatility than single stocks, the Trefis High Quality portfolio provides an alternative – having outperformed the S&P 500 and delivered returns exceeding 91% since its inception. The Department of Defense is currently the largest shareholder of the company, owning approximately 15% of MP's stock through a combination of preferred shares and warrants. This is a robust show of confidence, but it also indicates a clear message: the U.S. is seriously committed to achieving rare earth independence. For MP, this represents more than just financial gain. It's a strategic advantage. The agreement includes a 10-year price floor guarantee and a long-term supply contract—essentially ensuring revenue in a fluctuating market largely controlled by China. The financing will assist MP in completing its new '10X' magnet facility in Texas and increasing production at its Mountain Pass mine in California. Markets reacted swiftly. Investors view this as a pivotal turning point for the company, transforming it from a specialized miner into an essential part of national security. Year-to-date, the stock has risen over 180%, and analysts are quickly adjusting their forecasts. In summary? MP has evolved into more than just a mining enterprise. It has become a significant factor in the U.S. industrial and defense strategy—and the market is taking note. Not pleased by the unpredictable nature of MP stock? The Trefis High Quality (HQ) Portfolio, consisting of 30 stocks, has demonstrated a history of consistently outperforming the S&P 500 over the last four years. What accounts for this? Collectively, HQ Portfolio stocks have generated superior returns with reduced risk compared to the benchmark index; it's been less of a roller-coaster experience, as shown in HQ Portfolio performance metrics.
