IMPORTANT POINTS:
- Investor Cathie Wood has acquired two companies whose shares are below $5 and have a Buy consensus from analysts.
- While the market is facing some fears and headwinds, the head of Ark Invest is gathering shares.
- This time he chose “cheap” companies like Velo3D (VLD) and Ginkgo Bioworks (DNA).
In recent days, the stock market has suffered a sell-off because investors fear seeing higher interest rates for a longer period of time. However, Cathie Wood He has a particular view on it.
“I think we’re on the other side of a lot of interest rate hikes, which has destroyed a lot of performance. That is the most important” Clarified by the director of Ark Invest, who Take advantage of these falls to collect parts.
In this context, Wood buys “cheap” stocks that trade below $5 and also have a buy rating by most Wall Street analysts.
Velo3D (VLD)
As its name suggests, the company is dedicated to revolutionizing the metal 3D printing industry. The company specializes in the production and distribution of 3D printers, but they are not the common type, but avant-garde.
Their 3D printer is widely used by engineers from different sectors and there are already well-known companies that have acquired it, such as SpaceX, Lam Research and Honeywell.
In the second quarter, the last reported, the company revealed that revenue grew 28% annually to $ 25.1 million. However, it lowered its 2023 revenue guidance from between $120 million and $130 million to a range of $105 million to $115 million.
Despite the fact that shares are set to fall more than 31% in 2023, Cathie Wood bought 1.89 million shares this month with a total of 9.1 million titles worth over 10 million dollars.
Ginkgo Bioworks (DNA)
This company was founded in 2008 and specializes in synthetic biology and genetic engineering, designing and manufacturing customized microorganisms for a wide range of applications.
The “organisms” company, as it calls itself, creates a platform that enables the rapid and cost-effective development of biological solutions, such as the production of new enzymes, flavors, perfumes and even biofuels, with the aim of solving some of the most pressing challenges in the world.
Ginkgo has just signed an agreement to produce RNA-based drugs with pharmaceutical industry giant Pfizer, in addition to establishing a partnership with Google Cloud.
In the last two months, Cathie Wood bought 12.7 million shares of the company and increased her stake to 168.9 million shares. It has a current market value of 300 million dollars.
The company’s shares registered an increase of 4.4% in 2023, trading at $ 1.76.
