Mott Capital on their three favorite stocks – Tesla, Netflix and Acadia
Tesla Motors (NASDAQ:TSLA), Netflix (NFLX), and Acadia Pharmaceuticals (ACAD), all seemed primed to have an excellent 2017, which is why I have selected them as my top picks for 2017. Each of them has their particular story, and reason’s why I like them in the coming year.
For Tesla, 2017 is the year everyone has been waiting for, and it will be a make or break year for the company. With expectations set high, the Model 3,will be ready to roll out in the second half of the year. The Tesla story and company preparation for the past several years were all about the mass market, enter the Model 3. The Model S and X laid the ground and helped the TSLA to build a brand and a reputation; with the Gigafactory assisting in the assembly. Now will be the time to deliver. I’m paying attention to the growth in the number of cars, not whether the company misses or beats expectation by a couple of units here or there. If a setback comes, it will be in the form of announcement delaying the production of the Model 3. Meanwhile, any guidance increases are likely to propel the stock much higher.
Netflix is another stock that should bear the fruits of its labor in 2017 as the company begins to ramp up its international subscriber base. As of the end, the third quarter in 2016 NFLX had 46.4 million US subscribers and 36.8 million International Subscribers. International subscribers in the samequarter of 2015 had only 23.9 million paying subscribers; that is a year-over-year growth rate of 95%. Watch for the international segment of the business to grow and drive the company forward.
2016 was supposed to be ACAD’s year. The FDA approved Nuplazid (pimavanserin) for Parkinson’s Disease Pyschosis, and the company began selling the drug in the US. However, the Biotech sector fell out of favor in 2016 and as a result investors were unimpressed with Acadia. Nuplazid sales are expected to continue to grow, and the company is likely to file for European Approval sometime in 2017 as well. ACAD recently announced it would be running four new trials for pimavanserin over the next year, Alzheimer’s Agigtation, an Adjuctutive Treatment for Pyschophrenia, Negative symptom of Pyschophrenia, and an adjunctive reatment for Depression will now be on the company list of potential future therapies. Perhaps 2017 will be kinder to ACAD than 2016.
Michael Kramer and Clients of Mott Capital are long NFLX,Tesla &ACAD
Disclosure: Mott Capital Management, LLC is a registered investment adviser. Information presented is for educational purposes only and does not intend to make an offer or solicitation for the sale or purchase of any specific securities, investments, or investment strategies. Investments involve risk and unless otherwise stated, are not guaranteed. Be sure to first consult with a qualified financial adviser and/or tax professional before implementing any strategy discussed herein. Upon request the advisor will provide a list of all recommendation made during the past twelve months. Past performance is not indicative of future performance.
