We recently published a list of Jim Cramer Latest Portfolio: 10 Stocks to Buy and Sell. Since Axsome Therapeutics Inc (NASDAQ:AXSM) ranks 4th on the list, it deserves a deeper look.
Jim Cramer in his latest program talked about how the China factor is affecting US stocks. He said that companies that have exposure to China are getting hammered and he does not see that changing “anytime soon.”
Cramer said that currently there are many “pernicious forces working against the bulls.” The CNBC host said many growth stocks are declining right when interest rates are around the corner. He said that companies that don’t benefit from rate cuts are going down. Cramer also mentioned weak earnings reports which show companies having challenged client bases. Cramer mentioned a consumer products company that was recently hammered because of weakness in China.
Cramer thinks the problem in China is twofold: there’s a government that does not like America or American businesses while the population is “cash-strapped” even if they “like our country.”
Cramer said “China is so darn complicated.” He said at one point the Chinese government was “so business friendly” that Western companies thought it’s “insane” not to go there. But since the Trump administration, the country has been engaged in trade wars with the US.
Cramer said the Chinese government “took advantage of us on trade.”
For this article we watched several latest programs of Jim Cramer and picked 10 important stocks he’s talking about. With each stock we have mentioned its hedge fund sentiment. Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 275% since May 2014, beating its benchmark by 150 percentage points (see more details here).
Axsome Therapeutics Inc (NASDAQ:AXSM)
Number of Hedge Fund Investors: 33
A caller recently asked Jim Cramer about AXSM. Here is what he said:
“This is central nervous system, CNS. If you can make a breakthrough in CNS, your stock will double. If not, it will just go down. That’s a double or nothing stock right there.”
Axsome Therapeutics Inc (NASDAQ:AXSM) is making treatments for central nervous system (CNS) disorders. The company has two approved drugs on the market. The first is Sunosi, which is used for treating excessive daytime sleepiness in patients with narcolepsy or obstructive sleep apnea. The second is Auvelity, approved for treating major depressive disorder. But what makes the stock interesting is the list of several candidate drugs. These include an oral candidate for Alzheimer’s disease agitation, a candidate treatment for acute migraines, a potential treatment for narcolepsy, and a candidate treatment for fibromyalgia.
As of the end of the first quarter, Axsome Therapeutics Inc (NASDAQ:AXSM) had $330 million in cash and marketable securities on its balance sheet.
Needham recently started covering the stock with a Buy rating, citing revenue growth potential. The firm sees Axsome Therapeutics Inc (NASDAQ:AXSM) risk-adjusted revenue growing by 8 to 10 times in five years.
Overall, Axsome Therapeutics Inc (NASDAQ:AXSM) ranks 4th on Insider Monkey’s list titled Jim Cramer Latest Portfolio: 10 Stocks to Buy and Sell. While we acknowledge the potential of Axsome Therapeutics Inc (NASDAQ:AXSM) our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns, and doing so within a shorter timeframe. If you are looking for an AI stock that is more promising than AXSM but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
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Disclosure: None. This article is originally published at Insider Monkey.
