Why CSRP Stock Is a Good Buy Despite Losses

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Mar. 2 2021, Published 11:37 a.m. ET

CRISPR gene editing technology shows serious potential in correcting genetic errors, eliminating microbes, and eradicating pests that cause disease. Clustered Regularly Interspaced Short Palindromic Repeats (CRISPR)/CRISPR-associated protein 9 (Cas9) is a mouthful, but most consumers are happy knowing the outcome of the biopharmaceutical science. CRISPR Therapeutics is an eponymous company founded by a quartet of scientists, two of whom became the first women to win a dual Nobel Prize in Chemistry for their discoveries. 

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CRISPR Therapeutics has encountered some roadblocks to profitability and investors are responding. Despite that, CRSP stock is still a smart long-term bet. 

Who owns the CRISPR patent?

crispr
Source: Wikimedia

Emmanuelle Charpentier and Jennifer Doudna

CRISPR technology has so much prestige that intellectual property rights have been a concern from the outset. Universities like Harvard and UC Berkeley and the Broad Institute at Harvard and MIT have fought for their rights. Eventually, scientists Emmanuelle Charpentier and Jennifer Doudna earned their due in the form of a Nobel win.

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The patent allocation isn't 100 percent set in stone yet, but they're working on figuring out who was the first to invent—and whether the patent should go to individuals or institutions.  

WallStreetBets is talking about CRSP, of course

With more than 9.3 million readers, it isn't a surprise that the now-infamous WallStreetBets is chatting about CRISPR technology, especially CRSP.

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One user made a point that struck me. The user said, "All it takes is one bad study result to tank the stock, but over time those are just buying opportunities." Buying the dip on a long play goes far in maximizing returns for a solid company. 

CRSP stock has been down since the start of 2021

CRSP has shrunk more than 17 percent in capitalization since the beginning of the year. The company shares grew 157.59 percent in 2020. Analysts expect the company's earnings for the first quarter of 2021 to shrink. The final metrics are expected as soon as Apr. 27.

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Forecast for CRISPR Therapeutics stock

Any company dealing with clinical research is going to be slow-going in the early days. If you think about it, we're just a few months past the Nobel acknowledgement. Myself and many other investors suspect the long term will bring great strides in advancements, speed, and efficacy for CRISPR methodologies.

All things considered, CRSP is a solid long-term investment

Give yourself at least a handful of years to hold onto CRSP. Otherwise, you risk seeking liquidity during times of shrunken earnings, which CRSP investors are experiencing as we speak. 

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Now is a great time for investors to buy CRSP stock

CRISPR Therapeutics is on a major decline, making it a solid opportunity to get in as a long-term investor. There's nothing worse than buying a peak and watching your investment hang off the saddle for months on end. 

Of course, you don't have to purchase the individual stock. The ARK Genomics Revolution ETF (ARKG) from Cathie Wood's Ark Invest is a smart way to get a hand in a variety of genomics-oriented companies, including CRISPR Therapeutics. 

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