In a recent interview with Streetwise Reports, family asset manager and contributing writer Chen Lin shared the six (mostly mid-cap) companies that are his top investment choices for 2022.
The coming year could present exciting opportunities for investors, especially in natural resources and biotechnology, according to asset manager Chen Lin.
Here are his six best investment ideas for these sectors in 2022.
Chen’s Top 3 Natural Resource Picks
Firefox Gold Corp. (FFOX: TSX.V)
A gold exploration company in northern Finland, FireFox is one of three companies in the Golden Triangle of northern Finland.
“FFOX is fully funded and they are drilling. If they hit a hole, a find, the stock would go up many times, ”Chen proclaimed.
They have already made a discovery south of the area, which is very significant.
“They will have lots of drill targets throughout the year,” Chen explains.
Chen notes that while the company’s current market capitalization is $ 20-30 million, “one thing that’s holding the stock back is the many in-the-money warrants expiring in mid-2022 that are likely to be exercised, and there might be shares available for long-term investors to accumulate.
Cerro Resources from Pasco Inc. (CNSX: CDPR; OTCMKTS: GPPRF)
Next in the lineup, Cerro de Pasco has the highest grade surface deposits in the world and is part of the world’s largest super mine.
“The stock retreated last year after Glencorp reneged on the deal they had signed. They were weakened by it; However, 2022 could be the breaking year as they generate good cash flow and there could be more deals coming in 2022, ”Chen explained.
In addition, in a space where ESG is important, the company has entered the green hydrogen business and will convert pyrite or mining waste to produce green hydrogen. Another positive sign is that, according to Chen, the CEO has acquired five million shares, reflecting a strong commitment to the company.
Sierra Metals Inc. (SMT: TSX)
Sierra is a growing intermediate producer of copper, zinc, silver, gold and lead.
“They contain 45% copper and 30-35% gold and silver. Very similar to Freeport-McMoRan Inc. (FCX:NYSE), it’s had a terrible year, ”recapitulated Chen.
“The stock, recently traded at $ 1.30, had hit close to $ 3 because it was heavily promoted by memes traders,” he said, referring to the distinctly recent phenomenon which sees dramatic increases in prices. prices, mostly fueled by social media discussions on Reddit and Twitter. , which is then followed by an inevitable crash due to the actual performance of the business.
When the company “missed its profit forecast due to COVID, the stock fell, forcing meme traders to sell,” Chen said. “The NAV is worth $ 800 million, but the stock is now trading at around $ 200 million” – or as Chen calls it – “cheap.”
It’s a “very simple story” for the stock to go up to $ 3 per share on a balance sheet basis. “The company has virtually no debt and pays a dividend. Another promising sign according to Chen: “Insiders bought the title. ”
In addition to gold, Lin predicts a promising year for another sector.
Chen’s Top 3 Biotech Picks
The biotech sector experienced one of the worst years in its history in 2021.
“Their mini hedge fund went bankrupt, triggering heavy buyouts from the other hedge fund.” Chen said he was able to rack up a lot of good deals through indiscriminate selling and believes the industry will have a very bright future in 2022.
According to him, three names stand out.
Tricida, Inc. (NASDAQ: TCDA)
Tricida is a pharmaceutical company that markets a drug to slow the progression of chronic kidney disease (CKD). Two of its competitors, FGEN and RETA, have had their CKD drugs rejected by the FDA this year.
“TCDA was trading at $ 40 before the FDA decision, then crashed. It targets chronic kidney disease, a popular market. Many other funds buy stocks in the open market, and they are accumulating, ”Chen explained.
“The FDA has been tough on CKD for sure, although I think the risk-reward is there. Before (eventually) FDA approval, I can sell TCDA and take a free photo with the money from. home, ”he said.
“If they approve it in 2023, the stock could go up to triple digits. The benefit is huge, ”Chen confirmed.
Synaptogenix (NASDAQ: SNPX)
Chen thanks George Haywood for telling him that a small company with a market capitalization of around $ 60 million is developing therapies for neurodegenerative diseases like Alzheimer’s disease.
“In an earlier trial, they showed significant improvement in severe and late-onset Alzheimer’s disease,” Chen said of his choice.
The first results of the trials are the subject of a peer-reviewed article expected to be published in early 2022. “The NIH is sponsoring their current placebo-controlled trial, and the reading is expected to be published by the end of 2022. The indications show a very good chance of success. “
The company is fully funded.
He notes that Cassava Sciences Inc. (SAVA: NASDAQ) is in a similar phase and has a market capitalization of almost $ 2 billion: “The huge market capitalization gap suggests that the stock could appreciate significantly. If there is an improvement, it will be a huge success.
Amyris, Inc. (AMRS: NASDAQ)
A synthetic biochemistry company, Amyris, “is the market leader in synthetic cannabis. They will start selling CBG in large quantities.
It has a market capitalization of $ 1.6 billion.
Its competitor Ginkgo Bioworks Holdings Inc. (DNA: NYSE) has a market cap of $ 14 billion and has lower sales.
Chen said the # 1 New York Times Best-selling author and investor John Doerr is Amyris Inc.’s largest shareholder, suggesting Doerr could use his influence to market the product.
“What if he used his connections to strike a strategic deal with Google or Amazon?” It would be the biggest wild card for 2022. “
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