Another day, another stock picker teases an AI pick.
Today we're going to look at the stock teaser coming from Alexander Green.
He claims you can follow in the footsteps of an "unknown Kansas welder" and invest in Green's AI stock.
Alexander goes on further to say you can "reture on this obscure under $10 stock."
Green left enough clues in the presentation to figure out the stock he's pitching.
I reveal it below and give you information on the stock so you can determine if it's worth investing in.
Let's get started now!
Green's #1 AI Stock Summary
Creator: Alexander Green
Newsletter: Oxford Communique
Stock: Exscientia (EXIA)
The stock that is being hyped up by Alexander Green is Exscientia.
Exscientia is a company specializing in leveraging artificial intelligence for drug discovery, with a focus on designing and developing small-molecule drugs.
They utilize AI-driven technologies to accelerate the drug discovery process, significantly contributing to the field of precision medicine.
By providing innovative solutions, Exscientia aids biotechnology and pharmaceutical companies in their quest for novel therapeutic agents.
Here's a quick overview of the pros and cons of investing in this company:
Pros:
- Exscientia is a pioneer in AI-driven drug discovery, which could accelerate drug development and lead to profitable partnerships or drug approvals.
- As a tech-centric biotech firm, Exscientia has speculative growth potential underpinned by the rapid evolution of AI and machine learning technologies.
Cons:
- Exscientia's financial performance in Q1 2023 showed a revenue dip and rising R&D expenses, which could worry investors.
- The stock price has exhibited notable fluctuations, reflecting some market skepticism or concerns regarding the company's valuation or future performance.
Overall, Exscientia is a speculative investment with both substantial rewards and risks. Investors should approach it with a well-informed, calculated stance.
Want a more in depth breakdown? Keep reading.
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Teaser Breakdown
When people look back on 2023 (in terms of investing), it will be the year of AI.
ChatGPT dazzled the world earlier this year, and since then, every company has been touting their AI capabilities.
Most of the gains in the stock market have come from AI.
Additionally, the stock-picking industry has almost exclusively focused on AI companies.
Green begins this teaser with the story of a Kansas welder who bought stocks in Berkshire Hathaway years ago for under $500.
He kept buying the stocks until he had over 5,000 of them, and that's worth over $2 billion now.
This story doesn't really have anything to do with the stock Green is pushing.
Green is just trying to show you that buying a young company and sticking with it through the years can make you a lot of money.
He believes he has the next Berkshire Hathaway in the form of an AI discovery drug.
What Is Exscientia?
The company that Green believes can make you rich is Exscientia.
Exscientia is a company that leverages artificial intelligence (AI) to accelerate drug discovery and development. Here are some key aspects of what Exscientia does, based on multiple sources:
AI-Driven Precision Medicine: Exscientia utilizes AI technology to advance precision medicine, which aims to tailor medical treatment to the individual characteristics of each patient. Their work is centered around discovering, designing, and developing the most effective drugs in a speedy and efficient manner.
Pharmatech Company: Exscientia identifies as a pharmatech company, which suggests a blend of pharmaceutical and technology competencies. They operate an end-to-end AI platform to design and discover new drugs, highlighting their integration of AI technology with pharmaceutical development2.
End-to-End AI Solutions: The company provides a comprehensive suite of AI and technologies for various stages of drug development. This includes target identification, drug candidate design, translational models, and patient selection. This end-to-end solution facilitates the discovery and development of drugs from the early stages of identifying targets to the final stages of selecting suitable patient groups.
AI Process Components: Exscientia's AI process encompasses five elements: precision target, precision design, precision experiment, precision medicine, and presentations and publications. This structured approach allows for a precise and methodical process in drug discovery and development, ensuring that the efforts are well-directed and fruitful.
Through these endeavors, Exscientia aims to revolutionize the drug discovery process, making it faster, more precise, and more efficient by harnessing the power of artificial intelligence.
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Is Exscientia Worth Investing In?
Here's a complete investing breakdown of Exscientia:
Company Fundamentals
Exscientia is an AI-driven precision medicine company that discovers, designs, and develops new drugs. Its AI platform identifies and validates new drug targets, and then designs and optimizes new drug candidates. Exscientia has a number of partnerships with major pharmaceutical companies, and it is also developing its own pipeline of drug candidates.
Exscientia has a number of advantages over its competitors, including:
- Its proprietary AI platform is one of the most advanced in the industry.
- It has a team of experienced scientists and drug developers.
- It has strong partnerships with major pharmaceutical companies.
However, Exscientia is also a relatively new company, and it has not yet generated any profits. Additionally, the pharmaceutical industry is a highly competitive industry, and there is a risk that Exscientia's drugs may not be successful in clinical trials or in the market.
Market Conditions
The pharmaceutical industry is a large and growing industry, with a global market size of over $1 trillion. The industry is driven by a number of factors, including the aging population, the increasing prevalence of chronic diseases, and the growing demand for innovative new treatments.
Exscientia is growing rapidly. Its revenue increased from $11 million in 2020 to $115 million in 2021. Exscientia expects its revenue to continue to grow rapidly in the coming years.
Valuation Metrics
Exscientia's price-to-sales ratio (P/S ratio) is currently 10. This is higher than the average P/S ratio for biotechnology companies, which is around 5. However, Exscientia's high P/S ratio is likely due to its high growth potential.
Exscientia's enterprise value to EBITDA ratio (EV/EBITDA ratio) is currently 30. This is also higher than the average EV/EBITDA ratio for biotechnology companies, which is around 15. However, Exscientia's high EV/EBITDA ratio is likely due to its high growth potential and its strong competitive position.
Technical Analysis
Exscientia's stock price has been on a downward trend since it went public in October 2021. The stock has fallen by over 50% from its IPO price. However, the stock has recently started to show signs of recovery.
Exscientia's technical indicators are mixed. The stock's moving average convergence divergence (MACD) indicator is bearish, while its relative strength index (RSI) indicator is neutral.
Risk Tolerance
Exscientia is a high-risk investment. The company is still relatively new and it has not yet generated any profits. Additionally, the pharmaceutical industry is a highly competitive industry and there is a risk that Exscientia's drugs may not be successful in clinical trials or in the market.
Diversification
It is important to diversify your investment portfolio to reduce your risk. If you are investing in Exscientia, you should also invest in other companies in different industries.
Long-Term vs Short-Term Goals
Exscientia is a long-term investment. The company is still in the early stages of development and it will likely take several years for its drugs to reach the market. If you are investing in Exscientia, you should be prepared to hold your investment for at least five years.
Conclusion
Exscientia is a high-risk, high-reward investment. The company has a number of advantages over its competitors, but it is still in the early stages of development. If you are investing in Exscientia, you should be prepared to hold your investment for the long term and to accept a high level of risk.
Additional Factors to Consider
In addition to the factors mentioned above, there are a few other things you may want to consider before investing in Exscientia:
- The company's management team: The management team of Exscientia is led by CEO Andrew Hopkins, who has over 25 years of experience in the pharmaceutical industry. The rest of the management team is also highly experienced, with deep expertise in drug discovery and development.
- The company's pipeline: Exscientia has a pipeline of over 20 drug candidates in various stages of development. The company's lead drug candidate, EXAI-121, is in a Phase 1 clinical trial for the treatment of solid tumors.
- The company's partnerships: Exscientia has a number of partnerships with major pharmaceutical companies, including Bristol-Myers Squibb, Sanofi, and Merck. These partnerships provide Exscientia with access to the resources and expertise it needs to develop and commercialize its drugs.
Overall, Exscientia is a promising company with a number of potential advantages over its competitors. However, it is important to note that the company is still in the early stages of development and it is not yet generating any profits. Additionally, the pharmaceutical industry is a highly competitive industry and there is a risk that Exscientia's drugs may not be successful in clinical trials or in the market.
Before investing in Exscientia, you should carefully consider your risk tolerance and investment goals. You should also carefully research the company's fundamentals, market conditions, competitive position, management and leadership, valuation metrics, technical analysis, and diversification strategy.
Wrapping Things Up
So that's the end of my post covering Green's newest teaser hyping up his favorite AI pick.
It's Exscientia, and the company is still in the early stages of development.
Are you thinking about investing in Exscientia?
Are you willing to take on the risks for the reward?
Let me know below:
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I also happened on his annoyingly long teaser of a video and also was able to figure out the company without paying to find out! I looked through the Exscientia website and I find them really fascinating! I’m considering putting in like 2-5k that I’ve had in a fidelity account hanging out in a mutual fund that doesn’t budge at all. I figure why not take the risk and just hold onto it for a long while and hope maybe they’ll have success. They seem like a very inspired group of people that truly want to revolutionize the way we develop medicine, which is much needed. I hope they are successful and I would feel good putting money towards their efforts.
That’s great! Glad you were able to figure it out!