Today’s stock picks are two highly rated, speculative, biotechs trading way off their highs in the last 60 days — Faeth Therapeutics (FTH) 20.57 and Climb Bio (CLYM) 10.87.
1. Climb Bio (CLYM) 10.87, was given a buy rating with a $28 price target on Oct. 20t, by Deutsche Bank, citing the commercial potential of its pipeline. Their analyst views their kidney drug CLYM116 as a potential best-in-class therapy.
Per Finviz.com, there are 57.44 million shares outstanding, and 9.72 million shares are short, giving a high Short Float of 18.75%. Earnings show a loss of -.83 a share, and a projected loss of -.97 a share next year. Insiders own 9.78% of the stock.
If you look at the chart, you can see CLYM was selling for $18 a share in late August. In early September, the stock crossed below its 50-Day Moving Average (a bearish event), a couple of days ago it had a Bullish MACD crossover (a bullish event). We like the stock and think it’s going a lot higher, but there’s a lot of risk in this market because of the Iran war, the mid-term elections, and President Trump’s reaction to becoming impeached if the Democrats win the House. At 8 a.m. on 10/22/26, the Dow Futures are down 285 points, the Nasdaq 100 Futures are down 465 points and the S&P 500 Futures are down 75 points. Which means we may shortly be in a Bear Market. So if we were buying the stock, to be safe, we would only buy 50% of our position now, and wait to see how the Market does.
2. Faeth Therapeutics (FTH) 20.57, was given an outperform rating by William Blair on Oct. 16, and Guggenheim gave it a buy rating and $70 price Ttrget on September 16. The company’s lead program is PIKTOR, an investigational all-oral combination of serabilisib and sapanisertib in development for endometrial and breast cancer.
Per Finviz.com, there are 25.83 million shares outstanding, a float of only 18.93 million, and 2.07 million shares short. The Short Float is a fairly high 11.24%. Earnings show a loss of -141.65 per share and a projected loss of -3.20 per share next year. Insiders own 28.82% of the stock.
If you look at the chart, you can see the stock was selling for about $41 per share in early September. The stock crossed below its 50-Day Moving Average in mid-September (a bearish event) and moved down sharply. We think it’s trading at a bargain price, like CLYM, but we would only commit 50% of our allocated funds now, because of the Bear Market risk and wait and see what transpires.
Biotech Stocks are Risky Investments, with potentially large returns. But, if their drug in clinical trials isn’t approved by the FDA, the stock can plummet and you can lose all or a large part of your investment.
This article should not in any way to be construed as investment advice. For investment advice consult a registered investment advisor or a certified financial planner. Joe Cotton’s website is www.cottonstocks.net.
Joe Cotton is publisher of the market newsletter, Cotton’s Technically Speaking. He is a graduate of Xavier University, a former bank manager and credit analyst, and a former Fidelity Investments registered investment representative. Contact him at cottonstocks@hotmail.com