Axogen’s up more than 1000% since we invested and here’s a new reason why I think they’re brilliant
I’ve got a doctor’s appointment this morning to try to figure out why my left shoulder blade/upper back ribs have been hurting me for the last three weeks, so let’s do this week’s Live Q&A Chat tomorrow (Thursday) at 2pm ET. The IAm Cody Willard App Live Streaming isn’t working, so I’ll do the Livestream on my Facebook account on my facebook.com/clwillard/ account and on my youtube/clwillard channel. I’ll also take questions over the phone on our conference call line (Dial-in: 641-715-0700 Access Code: 709981), in the Trading With Cody chat room or just email us your question to support@tradingwithcody.com.
One of our biggest winners from the last three eyars, Axogen, AXGN upsized a common offering from 2 million to 3 million new shares. The offering is priced at $41 per share, meaning that AXGN will add around $120 million cash to the balance sheet.
I LOVE THIS. Do you realize that when we added Axogen to our portfolio when the stock was around $4 per share back in October 2015, its entire market cap was $120 million?
(From Trade Alert: Biotech microcap buy and a biotech ETF short October 6, 2015):
I’m also going to add a new name to my portfolio. You guys know that I‘m very leery about investing in penny stocks and/or stocks that came public through a reverse merger. So you can imagine how seriously I’ve taken my homework on researching this new pick that is indeed a small cap company that came public through a reverse merger and is practically a penny stock, trading at less than $5 a share.
Axogen AXGN is a biotech company that’s pioneering a brand new way for surgeons to rebuild and reconnect and save nerves in all kinds of surgeries….So look, this is a tiny market cap stock at about $120 million and should be considered a very high risk venture capitalist investment that will take 3-5 years to playout…”
Cody back in real-time 2018. So Axogen has gone up about 1000% since we bought it and the company is smartly, to quote Jim Cramer, selling while they can, not when they have to. Matter of fact, here’s a clip from my old TV show on Fox Business where I explain why it’s so smart for companies to sell some equity and raise cash after their stocks have gone up 5-fold or 10-fold like Axogen has. (You’ll also see me outright freaking out about the bailouts and the stock market — my timing wasn’t bad as weeks later the DJIA and other major indices had crashed 50% or more by the way).
So anyway, Axogen is setting themselves up to grow faster, invest bigger and taking advantage of a market cap that’s gone through the roof. I’ve trimmed some of my Axogen common stock occasionally over the last 2.5 years as its skyrocketed, including recently with the stock over $40. I might trim some more Axogen if it keeps running higher. But for now I’m just going to hold it tight and say with true admiration for the company’s leaders, “Great job Axogen.”