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If you’ve been paying attention, you know Mesoblast (ASX:MSB) is currently something of an Australian market darling.
Just take a look at its recent run. One-year returns are currently up +868%, borne largely from the US FDA’s decision to approve Mesoblast’s drug Ryoncil in mid-December.
For those who remember Droneshield’s stellar run through the first half of last year (or thereabouts), it’s safe to say Mesoblast took the crown as market darling right before the clinching point of 2024.
(It’s worth remembering it was among HotCopper’s most-watched stocks in 2024.)
Also helping is the company was added to Nasdaq’s biotech index one day before that announcement of FDA approval.
Mesoblast has since popped to a $3 billion-plus market cap.
But the real reason Australia’s trading community is currently in love with Mesoblast is because it taps into the unicorn success story of biotech juniors. The stock was worth 28 cents this time last year; now it’s $2.80.
Maybe not quite WA1 Resources (ASX:WA1) tier growth, but still impressive enough in what was a fairly dry 2024 when it came to stock picking.
Boring stocks like Coles (ASX:COL), CBA (ASX:CBA), and Woolworths (ASX:WOW) will always be advisable (so too will Harvey Norman (ASX:HVN), apparently, despite a slew of 2024 lawsuits,) but what the trading community really wants is to behave like smart money.
And for many, right now, Mesoblast is scratching that itch.
So it’s unsurprising Mesoblast’s Friday trading halt ahead of a further announcement on “proposed financing” caused much interest on HotCopper.
Commentary around the stock from the users was mixed. Some, fearing a capital raise, took an optimistic bent – well hey, at least this time they’re raising closer to thirty bucks, instead of thirty cents.
Steelheaded bulls (there are always a few) told everybody to be calm: Companies raise money after all, what are you panicking about?
Time will tell, but this is the nature of stocks that run hard, and fast. It’s always a joyride to the top: But once the ride does eventually stop going up, resolve falls apart almost immediately.
Then again, you can’t blame people for being cautious in the biotech sector. Nor can you blame them for seeing further value.
MSB last traded at $2.81.
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