Bret Jensen, writing in Real Money, is taking a more uplifting view of the markets in September, which is historically the worst trading month on the calendar.
“My recent columns have had a pessimistic tone. I am not sanguine about the economy or the markets and my recent articles have conveyed as much,” Jensen wrote in a recent Real Money column. “I don't believe the current surge of inflation is as "temporary" or "transitory" as the Federal Reserve portrays. I also think the recent wave of Delta variant cases and government actions such as vaccine mandates are going to have a far more detrimental impact on economic growth than most economic pundits.”
Even so, he’s on the stump for three new health care stocks that might look short in stature, but could pay off in a big way for investors looking for opportunities in a tight market.
“There are still pockets of value and individual opportunities in the market that I continue to act upon as warranted,” he said. “Almost all the new funds I am employing are put to work via covered calls so that I can garner the downside protection available via this simple option strategy.”
Here are three names Jensen said he’s been focused on.
ProQR Therapeutics (PRQR) - Get ProQR Therapeutics N.V. Report. This company just received a nice vote of confidence in its Axiomer RNA editing platform with a collaboration deal with drug giant Eli Lilly LLY that covers five potential targets. The deal could be worth $1.25 billion in milestone/development payments plus royalties on any eventual commercialization. “I liked the long-term future of ProQR even prior to this agreement, and this event thus bolsters that view,” Jensen said.
“Oscar Health delivers health insurance products and services via its full stack technology platform,” Jensen noted. “That said, the company is losing money as its ramps up its offerings but is experiencing huge revenue growth. In addition, nearly 90% of its market cap is represented by the net cash on its balance sheet and the decline in the stock price has triggered huge insider buying in the stock in recent weeks."
Hims & Hers Health Inc. (HIMS) - Get Hims & Hers Health, Inc. Class A Report. This stock is in a situation that’s very similar to Oscar Health. “It's an IPO that is off substantially from recent highs,” Jensen added. “HIMS is another fast-growing health care concern that is in the telehealth space and is not yet profitable. The company has a good business model, a solid balance sheet and has seen some significant recent insider buying.”