2018 Investment Series Post 23

Everyone loves payday. Just like everyone else, once I get that sweet deposit in the bank it starts burning a hole in my pocket. Before much time I am ready to blow it all on a shopping spree. My store of choice is the stock market, and I’m shopping for the best deals on companies. Here is what I dropped my $1,000 on this Friday, November 9th.

Lexicon Pharmaceuticals (LXRX)

The Twenty-Third pick of the Let’s Be Millionaires investment series goes to Lexicon Pharmaceuticals.

Here’s a blurb from their website about page:

“Lexicon Pharmaceuticals is a fully integrated biopharmaceutical company that is applying a unique approach to gene science based on Nobel Prize-winning technology to discover and develop precise medicines for people with serious, chronic conditions. Using a patient driven approach, we are working to discover and develop innovative medicines to safely and effectively treat disease and improve patient lives.”

Specifically, the chronic condition that I am interested in them medicating is diabetes. Sotagliflozin is a drug produced by Lexicon that is in late stage trials for Type 1 treatment, and early stage for Type 2. Type 1 approval is looking promising and Type 2 is relatively unknown.

Check out the Lexicon Pharmaceuticals website here.

About The Stock

LXRX stock has been trading in a range for the past 5 years. The low of that range being found at around $6 a share and the high of that range at just under $19 a share. That is a pretty wide range and right now the stock sits towards the lower end of it at $8.70 a share. From mid 2017 to early 2018 the stock fell from $17 to around $8. From May to June of this year the stock rallied back up to $13.50 a share. Those gains have once again been given back. I think that the stock may be gearing up for another rally over the next few months.

LXRX does not have positive earnings and therefore does not have a P/E.. At a current market cap of 922 million that puts LXRX stock in the small-cap category.

This stock could be categorized as a international, biotech, small-cap growth stock.

The Speculation

While Lexicon already has an approved drug generating revenue, the real speculation is on the approval of Sotagliflozin for both type 1 and type 2 diabetes. As sad as it is, the current reality in the US is that diabetes is practically an epidemic, and the number of people affected is on the rise. This means that any company able to successfully treat diabetes will be in for a very profitable future. I hope that Lexicon can be on that list of companies.

Want to start investing in stocks? Click Here to sign up for Robinhood where trading is free. Signing up through my link will also award you with a free share of stock ranging from $5-$180 in value.

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