Spotlight Pick: Schrodinger
Is Schödinger ready to change the world? In this piece, we briefly discuss why we like the stock.
Spotlight Pick: Schrödinger
It’s become clear that technology is the the main contributor towards solving inefficiencies in todays world. When there is a problem that needs solving, software is often where we turn. Innovative companies may be expensive when looking at traditional metrics, however; we believe the potential of some should not be ignored. Schrödinger is a name in particular which we find to be very exciting moving forward. We believe Baron Health articulates our view very well while giving a brief overview of the company.
Although new to the public markets, Schrödinger was founded in 1990. Over the years, Schrödinger’s software has been improving along with the computing power needed to leverage the software. This is a story where we believe the technology has finally caught up to the idea. This is not to say the software is perfect, however, we believe the key catalyst will come from further confirmation that the software identifies compounds which pass the various stages of the FDA approval process.
With the hybrid nature of this company, there may be a misunderstanding to the business and its model.
Rather than carry the risk of a traditional bio tech company, this hybrid model moderates the risk. We believe this will be a big part of the story for the stock moving forward. The milestone-based payments and royalties could eventually develop into substantial cash flow. This has us excited and in early.
At just over a 5B market cap, we see tremendous opportunity ahead. This is a name we expect to remain extremely volatile but believe patient investors will be rewarded. Innovation is what we like and we see a long run way for the leader in such an exciting field. This company represents where we see drug discovery heading and we believe the upside is tremendous.
At Conviction invest, Schrödinger is currently our top pick. We dig deep when we research stocks, which we love to share and discuss at our discord server. It’s 100% free, all experience levels welcome.
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