Learn From The Leaders: Biotech Stock Research on Seeking Alpha | Edmund Ingham’s 6-Tab Method

Hi there, this is Ed Ingham and I run the Investing Group Haggerston BioHealth on Seeking Alpha. And in this video, I'm going to show you um uh my approach to researching a new stock using some of the functionality that's provided by um the Seeking Alpha Premium site. Um so without further ado, let's get started. As you can see, I'm just on the Seeking Alpha homepage here. So if I want to um really do a kind of due diligence deep dive on a stock, there are actually six tabs that I like to open and um the I'm going to use um the ticker CRSP, which is Crispr Therapeutics, which is one of my favorite biotech stocks. Um so I often look at this one, but anyway, this is how I proceed. So I'll start off by um searching for Crispr and I want to open six tabs as mentioned. So this is kind of quite um hardcore due diligence. It's not um uh the most thrilling approach, but it's really helpful and I'll explain why as I go. And um this is part of what my service provides. So anyway, we've got three there, four, five, and six. So uh the first thing I always like to look at is transcripts and insights. So this will be um uh things like earnings calls, if they're doing a presentation um at a healthcare conference and there are numerous healthcare conferences that take place over the year. And I always think if you want to find out about a company, um the very good place to start is by listening to the company itself. So for example here, um we can look at a Crispr Therapeutics transcript from uh their appearance at the Citi 2026 Virtual Oncology Leadership Summit. So first of all, I'm going to open that. Um then I'm going to look at something a bit more practical, which is uh numbers and figures. So for that, I want to open up their most recent um earnings press release. So uh which Seeking Alpha very helpfully provides. So as we can see here, we've got all the information. So you have things like business updates um for commercialized products and pipeline products. And then further down, you'll look at R&D spending, SG&A, uh etc. and so on. And then you'll get the actual figures themselves right at the bottom here. So you've got your balance sheet, your income statement, and your cash flow statement. Um so the next one is um I want to look at the SEC filings and either the 10-Q or the 10-K filings. The 10-Q is quarterly, the 10-K is annual, and usually contains um a lot of important information. Um So obviously, you probably won't find a company um listing all the bad things about themselves during a transcript. That'll probably be a very bullish presentation. But actually in the 10-K, they are obliged to uh list all the risks to the business. So it's a very helpful place um to look at their assessment of what the risks facing their company are and also their competition as well, which um uh some companies go into a lot of detail and that can be very useful because obviously um Crispr Therapeutics for example doesn't develop drugs in a vacuum. Um it'll have a lot of competitors. So it's very uh helpful to know about those competitors, what they're doing, and if they actually represent a better investment opportunity. Um so the fifth tab, I'm going to leave like this cuz this is where I go through recent news. So I'll come down here and I'll be able to look at all the news, which is very helpfully collected by Crispr all in one place. Um so if I want to say cover, okay, what's been happening for the last year or so, all the major catalysts will probably be listed here. Um and lots of other things, analyst ratings, uh breaking news, um earnings releases, etc. and so on. Um So and then I want to look at the financials. So I bring this up on the Seeking Alpha site. Now Crispr um is not a company that um uh earns a lot of commercial revenue yet. Um but as you can see here, we've got all the balance sheets and just for example, you can see that Crispr has a very high cash burn. So it's losing almost well, over 500 million uh last year, um which is quite a sizable sum. And there's the balance sheet obviously there and the uh the cash flow I can look at as well. And the final sheet will be uh my most recent analysis of this stock. Um so I will then open this up and as you can see, I gave it a buy rating in January. And stock is up just about 12% since. So um uh this is how I normally, if I'm doing a piece of research, uh a post for subscribers, um you know, this is all the stuff I want to look at so I can read my last thesis and discover, you know, or remind myself of um the reasons why I gave it a buy rating. Um so I can scroll through this and it'll also have useful links such as Crispr's pipeline. Um so I will read this and then I'll probably go to the transcripts and see if it's um what date it is. So this is February the 18th, so it's obviously more recent than the last coverage I provided. So um these are I do find very useful. Um

they're extremely well copied by Seeking Alpha as well, very few mistakes. Um so you really get a sense of, you know, what the company is all about and what the near-term catalysts are, what they want to do long-term, and um you get to hear from the CEO, um who in the case of Crispr is very charismatic long-term CEO who's done a great job in my opinion. So you can see here, he's going to talk about um all of the most recent products such as the CAR-T cell therapies, um probably the in vivo products as well. Um And you know, probably go into a bit of uh sort of hardcore detail into um you know, how they achieve um knocking out specific genes and why it's different to other companies. So that's a great uh great place to um to start to kind of start. So you update yourself with, you know, what management's most recent thoughts on the company are. Um this is really just a you know, um it can often be looking for sort of um uh concise ways to understand data. So that you know, there's obviously hundreds and hundreds of pages in any 10-K and 10-Q, but you know, this will list highlights and upcoming catalysts, etc. So when is the next clinical stage uh trial results. Um and then here you actually have the revenues they've generated uh from their commercial asset Casgevy, which is a cell therapy indicated for sickle cell disease and beta thalassemia. So you can see there that they've earned recent revenue. And um here, this is uh you'll get a very thorough description of the business, which will really uh dig deep into the science um and explain uh how they, you know, how the product works, all of the um studies that it's been through before. Um so if you, you know, this is not going to be a quick overview, but it will be an in-depth overview. So this is, you know, once you familiarize yourself with um you know, the most recent developments of the company and stuff and you know, it's always good to understand uh the science in as much detail as you can and um you know, you read and reread and eventually um you can, you know, you gain a lot of insight and information from that. Um Now recent news we might look at. So for example, um this heart disease therapy um they're looking at and it's a very exciting area of development. So it's an in vivo gene editing therapy. So you could go to your doctor's office, have one single injection, and theoretically um be cured of, for example, low cholesterol for the rest of your life, which is obviously um an incredible thing and um uh Crispr and a few other companies are actually getting quite close to making that reality. So it's always uh really interesting just to look through these and you can also see um you know, news from the FDA. So what are the regulatory authorities doing? What kind of moves are they making? There's a quote here from Vinay Prasad, who many people know as a uh um sort of recently joined the FDA and is um has a different approach to gene therapy than what's been expanded in the past. Um so you go through this to familiarize yourself. And again, if anything's been missed out and the CEO's talked about it in my last article, I'll be able to pick it up here. And then, you know, finally, obviously um companies need to be uh funded. So you know, you need to understand um you know, how much money does this company get through a year. So for example, Crispr will probably have a billion dollars, more than a billion dollars of cash on its balance sheet. Um as you can see here, so it's got total cash investments of nearly 2 billion. Um so that makes the sort of 500 million per annum cash burn seem more palatable so that they have got the funding to, you know, to to spend that kind of money. Um and you know, you can then flip back and see well, have they raised any money recently and go back through the headlines to see when they last did a an at the market share offering. Um so essentially, by working through all these six different tabs, um you know, I there's so much information there that you can pick up on the company, you're very unlikely to miss much. Um you might also find in these transcript section, uh quite often there will be a presentation. In this case, I don't see one, but you can see but obviously how many times they talk to um you know, investment companies over the course of the year and how much sort of, you know, trying to generate interest in the company. Etc. and so on. Um So yeah, this is very useful. If there is a presentation there, obviously it's good to be able to see things visually represented as well. And I think it's helpful when you find, for example, you know, a description in the 10-K of a particular study design in written format and then you can also find that in the presentation as well. So you know, you really know that you're fully up to speed. And um and you have a powerful understanding of the stock and that's really what you're looking to do. And then you can read the transcript and see whether you agree with the CEO or whether you don't on, you know, the possibility of the timings around the next drug

approval, etc. And you know, you can go back to your own my own thesis in my case and rewrite certain elements. And that's really, you know, where I will start out investigating a company. Um there are other resources that you want to use on Seeking Alpha as well which is search for the stocks in the first place um to set up screeners, etc. But this is um quite a nerdy deep dive into, you know, all the different information that I'll look at when I'm compiling my research in a company. It's fantastic to find it all in one place. So, it's definitely a big help for me and I hope that's given you some insight into um into how I prepare my analysis and perhaps it's something that you might find useful for yourselves in the future. So, thanks for watching.