 Hey everyone, welcome to my very first video on Regeneron. Regeneron's EPS has been growing at an average of more than 20% a year in the last five years. The APE ratio is only 12. For the second quarter of 2021, their net income almost tripled compared to the previous quarter primarily because of the COVID-19 drug that they produce. The company has a very strong development pipeline with many products in phase 3 development. I believe Regeneron is grossly undervalued and is a great by-candidate. Let's get into the details. First, let's look at the chart for the last year. The candlestick chart is Regeneron. As we can see, it went up 8.79% during the last year. In comparison with biotech ETF, IBB went up about 27-28% and same with SPY and QQQ. Therefore, Regeneron definitely underperformed compared to the biotech industry in general and also compared to the broad market. But if you look at the last 20 days, the picture flipped. Regeneron went up an impressive 12.97% whereas IBB went up only 3.1% and QQQ and SPY went up by only 1.57%. What happened? One of the reasons is because the United Kingdom approved the use of Regeneron's product Regenco for the treatment of COVID-19. Regeneron Pharmaceuticals was founded in 1988. It's definitely not a new company, it's been around for a while, although it's definitely not the oldest pharmaceutical company around. It discovers, invents, develops, manufactures, and commercializes medicines for treating various medical conditions worldwide. This is a list of their major products and the revenues they generated during the second quarter of 2021 stated in terms of millions of dollars. I highlighted the three blockbuster drugs they have. The first one is ILEA for treating macular degeneration that's the problem of the eyes and it generated $2.3 billion of revenues in one quarter, the second quarter of 2021. The second blockbuster drug they have is Dupixant. It's for treating atopic dermatitis and asthma. Dupixant generated $1.5 billion of sales during the second quarter and of course their COVID-19 drug Regenco which generated more than $3 billion just in one quarter and then you can see the rest of their products. When we talk about these blockbuster drugs, we are always concerned about their patent expiration dates. ILEA for example is expected to have patent expiration between March 2026 and June 2027. Therefore it's got a runway of about four to five years. Definitely it's not going to last forever and Dupixant, the patent is estimated to expire in 2033. So Dupixant's got quite a bit of a runway yet. Let's talk more about their COVID drug Regencov. Based on the latest information from phase three trials, Regencov is supposed to reduce hospitalization or death by 70% in non-hospitalized COVID-19 patients. Certainly it's very effective and also the drug significantly shortened the duration of symptoms by four days. Oh by the way, FDA issued the emergency use authorization for Regencov back in November of 2020. The Regeneron treatment for COVID-19 became very famous when during October 2020, President Donald Trump tested positive for COVID-19 and received the Regeneron treatment. And then most recently in August of 2021 when Texas Governor Greg Abbott tested positive for COVID-19, he also received the treatment of Regencov. Recently the governor of Florida, DeSantis and Dr. Fauci actually agree with each other about the effectiveness of Regencov, even though they've been disagreeing with each other on various COVID related issues in the past year or so. So they're making a lot of positive news actually for this Regeneron treatment for COVID-19. These are all good publicity for Regeneron. And let's explain why the stock price has been moving up in the last 10, 20 days. And as of November 9, 2020 actually there was a competitive product also approved by the FDA for emergency use authorization for treating COVID, which is the drug bomb land never met produced by Eli Lilly. We'll talk more about Eli Lilly later on as compared to Regeneron. This is the development pipeline of Regeneron. This is only half the pipeline because there are too many products in the pipeline. I have to list them in two pages. The first column is phase one, second column phase two, third column phase three. Then we continue on this page altogether. They have nine products in phase three. Definitely Regeneron is not a one product wonder. They have many, many products in the pipeline. It's a very, very strong pharmaceutical company. If you look at their sales, their sales here indicated by the black line has been going up quite steadily. And of course, in the last two quarters, they pick up a lot faster primarily because of the COVID-19 treatment. And in comparison, Eli Lilly has been pretty flat. As far as EPS, again, a quick uptake for Regeneron in the second quarter, whereas Eli Lilly is still pretty much flat. And that's where Regeneron is definitely much stronger company financially compared to Eli Lilly at this point. If you like what you've seen, I'd like to encourage you to click the like, subscribe and notification button so that you'll be notified when I publish the next video. And also it'll encourage me to produce more videos like this in the future. Thank you very much. Let's continue. Let's talk about my own evaluation of Regeneron. First of all, I look at all the major leading pharmaceutical companies. Look at their trailing P-ratio for P-ratio impact ratio. And Regeneron is here. The current P-ratio, it's only at 12. And forward P-ratio is predicted by Yahoo. It's a reasonable 15, which is very conservative compared to the P-ratio of some of the high-tech companies. I use the assumption of 10% earnings growth for the next few years. But in fact, in the last five years, the earnings growth average 20.6%. Therefore, 10% growth assumption is very conservative. And I assume an average P-ratio of just 13, which is again, I'm not a very conservative number. From these two assumptions, I use the second quarter financial figures. And then I extrapolated the stock prices for 2021, 22, and 23. You can see they range from 831 to 1005. Since I want to be conservative at this point and not get too far ahead of the current price, I am setting a target of $720 a share to be achieved by the end of November 2021. Let's look at the other endless opinions. As of today, the closing price is at $665.77. My target is $720. Yahoo Business gives them a buy rating, 2 out of 5. That's a smaller number better, so a 2 point out of 5 points. High target is $906. Average $674. Low target is $545. Lowe's never lear. He doesn't like to stop much, gave him an overall rating of C with a quantitative rating of D that's primarily related to the chart being fairly flat and then didn't pick up until the last 10, 20 days or so. That's why Lowe's never lear penalized them with a quantitative rating. Although the fundamental rating is pretty good at a B rating. TipRanks.com gives them a strong buy, which is very bullish, with a high target of $825, medium target of $702, and low target of $570. C&M money, buy rating, high target of $906, medium rating of $679, and low rating of $545 at the street.com. Buy rating with a B plus target of $757, definitely most of the medium and high targets are much higher than the current price. So overall the analysts are very bullish about Regeneron as well. It's good that the stock has good fundamentals and that the professional analysts like it, but the price is not going to pick up much until the general investors start paying attention to the stock. So how are the general investors reacting to the stock or to the company recently? If you look at Google Trends, comparing the search phrases Regeneron stock with another very well-known biotech stock, BioNTech Regeneron, if you look at the last 12 months, has not been searched as frequently as BioNTech. However, there was a peak here around October 2020. Why? That's because President Donald Trump was treated with the COVID drug by Regeneron. That's why it enjoyed a certain popularity for a short period of time and since then it's pretty much faded. But in the last 30 days, as you can see, the popularity of Regeneron started to pick up and hopefully that trend will continue. Let's look at the charts. This is a daily chart. You can see there's a big jump here on August 5th. That's when Regeneron announced their second quarter earnings and they revealed the big boost in earnings primarily because of the COVID drug. And there's another jump here. That's actually a jump up the day before United Kingdom approved the use of Regen Cove for treating COVID-19. At this point, I don't think the EU has approved the use of Regen Cove yet. And that's why I believe when EU approves it, we will see another big jump in the stock price. We see the price following this upward channel. And most recently, it hit a very high point in RSI showing an overboard situation and it hit the all-time high of 674. And previously, when we got to this level in RSI, the stock price went down a little bit and started to go sideways. And it didn't start to recover until RSI got to about almost 50. And that's why at this point, I don't own any Regeneron stock yet, but I do plan to buy shares when RSI gets between 60 and 50 in the next few days. DMI has been flashing a buy signal pretty much in the last month, very bullish. MACD showed the buy signals of August 9th and it's been bullish ever since on a daily chart. This is an hourly chart. We can see that the RSI flashed overboard signal here. And sure enough, the stock price started to go down. And actually at one point, it dropped almost $20, about 3% to 4% from the peak value here after seeing the RSI showing the overboard signal. DMI showed a bearish sell signal today. MACD also showed a bearish sell signal on an hourly chart. And that's why I will be waiting for the hourly chart to show a bullish buy signal before I buy it. Let's look at support and resistance levels. Because we are just a couple of days after the all-time high, I have to use the Fibonacci extension to predict some of the resistance levels. I use this point around July 27, 28 or so as a minimum point. And this point around August 17, as a maximum point. And from that, I draw the Fibonacci extension diagram. For support, I see the next support level 665, which is exactly where Regeneron closed today. And actually that line is going to act as both a support and a resistance point, which is Fibonacci 23%. The next support point will be at 640A, Fibonacci is 0%. Next level down will be 625, which is a 20-day simple moving average. And it's a middle of the boling demand right here. And the next level down will be 591, which is a 50-day moving average. The next level down will be 560A, which is the Fibonacci minimum point. For resistance, I see the next level up at 670A, which is Fibonacci 38%. Right here, next level up will be 680A, Fibonacci 50% here. And the next level up, 697, Fibonacci 61%. And next level up, 710, Fibonacci 78%. What are my strategies? I do want to buy Regeneron, but not now because it's overboard according to the RSI indicator. So I'll be waiting in the next couple of days until the daily RSI indicator gets to be around 50 to 60. And especially when the hourly DMI and MACD start turning bullish, that's the time I will most likely buy. In general, I will buy Regeneron due in dips and when it bounces from the support level or when positive news breaks out. And I will sell when it drops at key resistance level or whenever news breaks out. And I will hold some of my shares for the long term because I do that for all the companies I invest in that have very good fundamentals and Regeneron definitely is one of them. And I will be swing trading the rest of the shares. And our monitor current events related to Regeneron, I will send Twitter messages to my subscribers when I buy or sell Regeneron shares or when major news breaks out. At this point, I'd like to remind you to subscribe to my Twitter account in addition to subscribing to my YouTube channel. My Twitter account is DanMarketL. For example, 14 hours ago, I tweeted that I sold some shares of Moderna after my limit sell order was triggered at 407. And then an hour later, I tweeted that I bought back some shares of Moderna at 395. So I sold it 407 and bought it back at 395. Definitely I made a small profit there. Again, if you like this video, I'd like to encourage you to click the like, subscribe and notification button. And as usual, I will welcome your comments, questions and suggestions. Let me recap my forecast. I expect Regeneron to be at $720 or above before the end of November 2021. And today's closing price is $665.77. At this point, I'd like to remind you that I'm not a financial advisor. I share my stock trading strategies and my analyses for educational purpose only. If you want to buy or sell stocks, you should make your own decisions. And you should definitely consult with your financial advisors before you do so. This wraps up my video for now. I will chat with you again in the next few days. In the meanwhile, I'd like to wish you the very best of luck with your financial investments.