Chris Lau
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Chris Lau in Value Stocks,

Intrexon: Go Big or Go Home

Even though Intrexon (XON) losing money hurt the share price, the Zika virus spread will create a big market for the biotech company. Patience is an obvious trait investors need. The company is going to continue losing money. Its projects include not just treatments for Zika. It has joint ventures with Sanofi (SNY), along with many potential drugs under study.

Treating Zika patience should take priority for Intrexon. There are political risks that Intrexon still must overcome even if it has positive results. Unfortunately, the U.S. Congress did not allow for using mosquitos as a vector for containing the disease. Budgeting for the Zika problem is not materializing.

Until then, Intrexon shareholders will either lose big if nothing happens, or win big if a project moves forward.

The stock’s chart shows the negative momentum is firmly in place. The heavy short float of 14.5% may create a short squeeze should XON report strong clinical results.