One of my favorites stocks is Organovo Holdings, Inc. (ONVO). There are a few reasons why I am a fan of Organovo.
In terms of trading the stock, Organovo has a certain degree of volatility and therefore is liquid. It is fairly easy to trade in and out of the stock if you can get your timing down right with strategically placed buy/sell limits. For example, the price delta for today alone was $0.16, which is actually a tight range for Organovo. I have included a chart where you can view the difference in high/low prices as well as the trading volume over the past couple weeks.
Here are a few charts showing trading activity and pricing for today, one year, and since company inception.
Although the volatility and liquidity of Organovo keep things interesting, overall I am long on Organovo. In my opinion the best part of Organovo stock is the company itself. Organovo is involved in bioprinting and originally had an objective of 3D printing a human organ. This is a lofty objective, and as a result they have set a few shorter term objectives in order to generate revenue. Late last year they released a commercial product in the form of a liver tissue that is used to allow researchers to test drug products in the lab and thereby receive early indications of potential success prior to clinical trials. Clinical trials take large amounts of time and money to accomplish and Organovo’s product has the potential to save researchers and private companies significant amounts of both.
Based on their release of a commercial product they are now beginning to recognize revenue (4Q 2014) and are engaging in key partnerships such as L’Oreal, Harvard University, and the National Institute of Health (NIH) among others. Organovo was also invited to the World Economic Forum in Davos, Switzerland where they were named the 2015 Technology Pioneer. Beyond their recent recognition of revenue, launch of commercial products, and growing public awareness, Organovo also appears to have an experienced and balanced management team.
I am of the opinion that Organovo is a company to watch and plan on purchasing additional shares of Organovo as the price revisits my predetermined buy limit from time-to-time. Although Organovo is definitely an exciting company, it is not for the faint of heart. As a development stage company there is still much risk left within Organovo and therefore many challenges the company must overcome especially as competitors emerge within the bioprinting space. However, with risk comes the potential for greater rewards. If you’re like me and enjoy entrepreneurial companies that are looking to change the world, then Organovo may be for you.
One of the most exciting aspects of Organovo is that the company recently started holding retail investor Web conferences. I recently watched one such Web conference where their CEO Keith Murphy provided a fascinating company overview as well as a company update. There is also the ability to ask the CEO questions directly via the Web interface.
Overall Organovo has the feeling of a young funded startup and investing in their stock has a feel of joining their team for the ride. As with any startups there will be highs and lows and the potential for success or failure. Organovo is an exciting company that continues to fascinate me the more I learn about it. Bottom line is that I feel that the company and their team are doing the right things at this point of their life cycle. It will be fun to watch Organovo over time and see how things progress.