XERS is a Buy and Here is Why…

The Reasons Why I Believe XERS is Undervalued

“The stock market is filled with individuals who know the price of everything but the value of nothing” — Phillip Fisher

Xeris is a specialty pharmaceutical company leveraging novel formulation technology platforms to develop and commercialize ready-to-use, liquid-stable injectables. As of writing this article, XERS is trading at $5.12.

Unlike other pharmaceutical companies that pump their stocks artificially, Xeris does not post many updates. Shorts realise that without solid PR, they are safe as a recent offering was at $2.72 and the stock has grown organically to $5 range.

The fundamentals and catalysts point to the massive billion-dollar potential for XERS. Now a significant move will happen when PR/catalyst is triggered, this will cause the 15 million shorts to cover, which will in turn, exponentially increase the stock price to its proper levels.

2. Forget GVoke… Look What Else XERS Has!

Even if we exclude XERS flagship product GVoke, you have:

  • Pramlintide Insulin: The only company that was able to combine these drugs in one dose
  • Diazepam: Treats ARS and Dravet Syndrome, 9/10 figure value add annually
  • 2 other speciality applications for the RTU glucagon (PBH and EIH)
  • Active projects with Top 10 pharma companies
  • Multiple additional projects under discussion with both large pharma and specialised biotech companies
  • Pharmaceutical giants are in preclinical trials using Xeris’s proprietary tech!
Xeris Pipeline

3. CEO

A lot of retail investors do not take into account the management of a company when they invest. I made the same mistake with NASDAQ: GEVO. However, XERS CEO, Paul Edick has previously sold two public companies over the $20/share price point, came out of retirement for the 3rd time and declined offers from 30 companies only to lead XERS; owns multi-million stock options (meaning that his best interests should be in line with the shareholders) and that he confidently stated that this stock will be $40–50 in the future.

In response to COVID-19, the executive team deferred their annual compensation to cut cash burn. If this doesn’t indicate clear attempts to preserve and increase shareholder value, then I do don’t know what will.

Competitor Analysis:

ZEAL is a direct competitor with a billion-dollar market cap.

Technical Analysis:

Xeris Pharmaceuticals Inc gained 4.28% in the last trading day (Monday, 14th Sep 2020), rising from $4.91 to $5.12, and has now gained 6 days in a row. It is not often that stocks manage to gain so many days in a row, and falls for a day or two should be expected. During the day the stock fluctuated 4.92% from a day low at $4.88 to a day high of $5.12. The price has risen in 8 of the last 10 days and is up by 20.47% over the past 2 weeks. Volume has increased in the last day along with the price, which is a positive technical sign, and, in total, 52 thousand more shares were traded than the day before. In total, 2 million shares were bought and sold for approximately $11.44 million.

Mostly positive signals in the chart today. Xeris Pharmaceuticals Inc holds buy signals from both short- and long-term moving averages. In addition, there is a general buy signal from the relation between the two signals where the short-term average is above the long-term average. On corrections down, there will be some support from the lines at $4.83 and $3.92. A breakdown below any of these levels will issue sell signals. A buy signal was issued from a pivot bottom point on Friday, June 26, 2020, and it has risen so far 103.98%. Further rise is indicated until a new top pivot has been found. Furthermore, there is a buy signal from the 3 months Moving Average Convergence Divergence (MACD). Volume is rising along with the price. This is considered to be a good technical signal.

Outlook:

Xeris Pharmaceuticals Inc lies in the middle of a very wide and strong rising trend in the short term and a further rise within the trend is signalled. Given the current short-term trend, the stock is expected to rise 15.28% during the next 3 months and, with a 90% probability hold a price between $3.72 and $7.26 at the end of this period.

My personal EOY price target for XERS is $8. If you do decide to invest in this company, ensure that you are not emotionally affected by wild price fluctuations. Having held this stock for only one month now; I have admittedly fallen prey to some of the sharp drops, which later rebounded up. This stock definitely likes to cool off the RSI when it goes beyond 70. The most important thing for us retail investors is to understand what you hold and not to be too concerned about the daily price action. Don't just take my word for it - conduct your own due diligence!

Legal Disclosure: I’m not a financial advisor. The information contained in this article is for entertainment purposes only. Before investing, please consult a licensed professional. Any stock purchases I show in this article should not be considered “investment recommendations”. I shall not be held liable for any losses you may incur for investing and trading in the stock market in an attempt to mirror what I do. Unless investments are FDIC insured, they may decline in value and/or disappear entirely. Please be careful!

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As a venture scout, the firm I represent is looking for technology startups that have already gained traction and have displayed some form of revenues.

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