Bluebird Bio Inc

Bluebird Bio Inc (0HOH) is a biotechnology company providing gene therapy. The services provided by the company helps the patients to tackle cancer and severe genetic diseases. The company presently have more than 800 employees across Europe and the US.

Recent News
On 9th October 2019, Bluebird Bio announced a research collaboration with Novo Nordisk A/S. As per the collaboration, both the companies will jointly develop Next-Gen genome editing treatments for the treatment of genetic diseases such as haemophilia.

Financial Highlights – H1 Financial Year 2019 (30^th June 2019, $, thousand)

(Source: Interim Report, Company Website)
 
In the first half of the financial year 2019, due to an increase in the revenue from license and royalty revenue for the period, the company’s total revenue increased to USD 25,767 thousand as against USD 23,808 thousand in H1 FY2018. With the increase in the operating expenses for the period, the company reported a loss from operations of USD 373,876 thousand in H1 FY2019 versus a loss from operations of USD 265,241 thousand in H1 FY2018. The company’s LBT (loss before tax) stood at USD 360,712 thousand in the first half of the financial year 2019 versus an LBT (loss before tax) of USD 261,120 thousand in the first half of the financial year 2018. The company’s LAT (loss after tax) stood at USD 360,228 thousand in the first half of the financial year 2019 versus a LAT (loss after tax) of USD 261,120 thousand in the first half of the financial year 2018. The basic and diluted loss per share in H1 FY2019 stood at 6.54 cents versus a basic and diluted loss per share of 5.22 cents in H1 FY2018.

Share Price Performance

Daily Chart as at October-17-19, before the market closed (Source: Thomson Reuters)

On 17th October 2019, Bluebird Bio Inc shares were trading at USD 91.62 at the time of writing before the market close (at 10:30 AM GMT) and remained same against the previous day closing price. Stock's 52 weeks High and Low are USD 163.43/USD 84.01.

Conclusion
The company’s top-line performance has improved in H1 FY2019whereas the bottom-line performance has declined for the period. The company’sprofitability remained in the negative zone for the period. The company operates in a challenging environment which requires continuous investment, sometimes at the cost of profitability, to stay ahead of competitors. As the company operates inmultiple geographies, its profits can be impacted negatively due to foreign exchange rate fluctuations.

Considering the risks associated with the company’s operations and weak financial performance, we believe that investors can “Avoid” the stock at the current price of USD 91.62 (as on 17^th October 2019, before the market close).

Nutanix Inc

Nutanix Inc (0K9O) is a provider of cloud-based applications and data to the clients from the private and public sector. The company provide services related to IoT, ROBO, Private cloud, Data Recovery, and Pubic cloud. The company also provide End-User Computing, Virtualization & Cloud, Databases, VDI, Data Protection & Disaster Recovery, AI/ML, Business Critical Apps and Dev/Test solutions to its clients.

Financial Highlights – Financial Year 2019 (31^st July 2019, USD, thousand)

 (Source: Annual Report, Company Website)
 
For the financial year ending 31^st July 2019, due to an increase in the revenue from support, entitlements and other services for the period, the company’s total revenue increased to USD 1,236,143 thousand as against USD 1,155,457 thousand in FY2018. The company’s gross profit for FY2019 was at USD 932,015 thousand as against USD 769,427 thousand in FY2018. With the increase in the operating expenses for the period, the company reported a loss from operations of USD 598,041 thousand in FY2019 versus a loss from operations of USD 280,408 thousand in FY2018. The company’s LBT (loss before tax) stood at USD 613,060 thousand for the financial year 2019 versus an LBT (loss before tax) of USD 289,714 thousand in the financial year 2018. The company’s LAT (loss after tax) stood at USD 621,179 thousand for the financial year 2019 versus a LAT (loss after tax) of USD 297,161 thousand in the financial year 2018. The basic and diluted loss per share (attributable to Class A and B shareholders) in FY2019 stood at 3.43 cents versus a basic and diluted loss per share of 1.81 cents in FY2018.
 
Share Price Performance
 
Daily Chart as at October-17-19, before the market closed (Source: Thomson Reuters)

On 17th October 2019, Nutanix Inc shares were trading at USD 26.19 at the time of writing before the market close (at 11:30 AM GMT) and remained same against the previous day closing price. Stock's 52 weeks High and Low are USD 54.68/USD 17.74.

Conclusion
 The company has shown a decline in the financial performance for the financial year 2019. The company’s top-line performance has improved in FY2019whereas the bottom-line performance has declined for the period. The company’sprofitability remained in the negative zone for the period. The company operates in a challenging environment which requires continuous investment, sometimes at the cost of profitability, to stay ahead of competitors.Being a technology company, the Nutanix needs to invest heavily in innovation and system maintenance and, any failure to do so will impact the brand royalty and may affect the company’s financial performance.

Considering the risks associated with the company’s operations and weak financial performance, we believe that investors can “Avoid” the stock at the current price of USD 26.19 (as on 17^th October 2019, before the market close).

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